FxWirePro: NZD/JPY grinds lower along 5-DMA, breaks below daily cloud, bias lower

• NZD/JPY grinds lower along 5-DMA, scope for further weakness.
   
• Upside in the pair remains capped at 5-DMA at 78.61, doji formation keeps scope for weakness.
   
• Minor recovery attempts have been capped below 79 handle, only decisive breakout above could see upside.
   
• Technical studies also support weakness. RSI and Stochs nicely converging with price action.
   
• The pair is range-bound on the day, currently trading at 78.36 levels, down 0.06% at the time of writing.
   
• Price action has slipped below daily cloud. Bears now target 77.35 (Oct 31 low) and then 76.40 (trendline).
   
• On the flipside, breakout at 200-DMA at 79.77 negates bearish bias.
   
• Watch out for Australia employment data scheduled later this week which could have an impact on the kiwi.

Support levels - 78.18 (61.8% Fib), 77.35 (Oct 31 low)

Resistance levels - 78.61 (5-DMA), 79.77 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-downside-in-Bearish-Cypher-pattern-eyes-618-Fib-at-7818-1139975) has hit TP1/2.

Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-capped-below-5-DMA-at-7916-minor-upside-like-on-break-above-1144641) is progressing well.

Recommendation: We recommend holding for further downside.

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