FxWirePro: NZD/JPY extends slide along 5-DMA, bias lower, good to go short on rallies

• NZD/JPY is extending slide lower, remains capped inside daily cloud.
   
• 5-DMA is sharply lower and the pair is extending grind along 5-DMA.
   
• Downside finds strong support at 80.40 (50-DMA), break below will accentuate weakness.
   
• Technical indicators are bearish, Stochs biased lower, RSI below 50 and MACD is showing a bearish crossover.
   
• The pair is trading a 'Rising Wedge' pattern and close below 50-DMA raises scope for test of Wedge base at 78.75.
   
• On the flipside, we see bearish invalidation on breakout above daily cloud.

Support levels - 80.40 (nearly converged 50-DMA and 38.2% Fib of 83.91 to 78.18 fall), 80, 79.53 (23.6% Fib)

Resistance levels - 80.82 (20-DMA), 80.86 (5-DMA), 81.09 (cloud top)

Recommendation: Good to go short on rallies around 80.80, SL: 81.10, TP: 80.40/ 80/ 79.55.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -93.1068 (Bearish), while Hourly JPY Spot Index was at 48.5001 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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