FxWirePro: NZD/JPY finds strong support at weekly 100-SMA at 77.71, break below to see further weakness

• NZD/JPY finds major support at weekly 100-SMA at 77.71, we see further weakness on break below.
   
• The pair is trading in a 'Rising Wedge' pattern and has broken below 'Wedge Base' support at 78.90.
   
• The pair is currently holding strong support at weekly 100-SMA at 77.71, we see scope for further downside on break below.
   
• Technical studies on weekly charts are bearish, pair has slipped below 38.2% Fib at 78.30.
   
• We see scope for test of weekly cloud base at 76.52. Violation at cloud base to see test of 61.8% Fib at 74.84.
   
• On the flipside, we see major resistance at 79.90 (nearly converged 200 & 50-DMA). Bearish invalidation on break above.

Support levels - 77.71 (weekly 100-SMA), 77, 76.52 (weekly cloud base)

Resistance levels - 78, 78.16 (5-DMA), 78.90 (trendline), 79, 79.50 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-Wedge-Base-support-at-7890-bias-lower-stay-short-969077) has almost hit all targets.

Recommendation: Watch for break below weekly 100-SMA for further downside.

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