FxWirePro: NZD/JPY finds major support at 78.90 (wedge base), weakness likely on break below

• NZD/JPY opens with a bullish gap and is trading 0.56% higher on the day at 79.43.
   
• The major is trading in a rising Wedge pattern, and finds strong support at Wedge base at 78.90.
   
• The pair has edged higher after holding major support at 78.84 (Wedge Base) on Friday's trade.
   
• Technical studies are bearish and we see weakness on break below Wedge Base support. Scope then for test of 38.2% Fib at 78.30.
   
• On the flipside, we see strong resistance at 79.73 (converged 5-DMA and cloud base).
   
• Break above 79.73 finds next major resistance at 200-DMA at 79.98. Bearish invalidation on break above 200-DMA.

Recommendation: Watch out for break below wedge base support at 78.90 to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -70.5194 (Neutral), while Hourly JPY Spot Index was at -55.9654 (Neutral) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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