FxWirePro: NZD/JPY finds strong support at 75, break below required for further weakness

NZD/JPY chart - Trading View 

• NZD/JPY slumps lower after RBNZ interest rate decision, hits 3-week lows at 75.08.
   
• The pair is trading 1.57% lower on the day at 75.19 at 0435 GMT, bias bearish.
   
• Kiwi dives across the board on an unexpected dovish shift from RBNZ. NZ 10-year bond yield hits record lows.
   
• The Reserve Bank of New Zealand kept interest rates unchanged at 1.75 percent, as expected, but said the next move is likely to be down.
   
• Markets were expecting the central bank to retain neutral bias on interest rates. The balance of risk has shifted to the downside.
   
• NZD/JPY has taken support at 75 mark (200-DMA, trendline, 23.6% Fib). Break below will see further weakness.
   
• Next major support lies at daily cloud at 74.86. Break below cloud to see dip till 61.8% Fib at 72.22.

Support levels - 75 (nearly converged 200-DMA, trendline, 23.6% Fib), 74.86 (cloud top), 73.96 (38.2% Fib)

Resistance levels - 75.43 (110-EMA), 75.90 (21-EMA), 76

Recommendation: Watch out for break below 75 for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.