FxWirePro: NZD/JPY eyes major trendline support at 77.50, stay short

• NZD/JPY extends weakness for the 5th consecutive session, bias still bearish.
   
• Upbeat Japanese GDP number released earlier today adding to the weakness in the pair.
   
• The pair has hit new 2017 lows at 77.67, bears now target 77.50 (major trendline support).
   
• Technical studies are bearish. RSI and Stochs sharply lower. RSI below 50-levels and MACD is on verge of bearish crossover.
   
• Violation at 77.50 could see further weakness, scope then for test of 77.40 (78.6% Fib and then 77 levels.
   
• We see bearish invalidation on retrace above 20-DMA at 78.51.

Support levels - 77.50 (trendline), 77.35 (Oct 31 low), 77 (trendline)

Resistance levels - 78.32 (5-DMA), 78.51 (20-DMA), 78.79 (61.8% Fib retrace of 75.626 to 83.910 rally)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-Trade-Idea-1003865) has hit TP1.

Recommendation: Stay short for 77.50/ 77.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -137.053 (Bearish), while Hourly JPY Spot Index was at 47.536 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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