FxWirePro: NZD/JPY holds 200-DMA support, break below eyes 50-DMA at 79.06

• Kiwi remains on the back foot after last week's dismal New Zealand Q4 CPI reading.
   
• NZ CPI data missed expectations, Q4 CPI +0.1 pct q/q (poll +0.4 pct); y/y CPI +1.6 pct (poll +1.9 pct).
   
• NZD/JPY is extending grind lower after breaking below 20-DMA in last week's trade.
   
• The pair is holding support at 200-DMA at 79.65, break below to see further weakness.
   
• Below 200-DMA we see next support at 38.2% Fib retrace of 76.09 to 81.56 rally at 79.47.
   
• Technical indicators support downside. Bearish divergence on intraday charts keeps scope for weakness.
   
• Upside capped below 5-DMA at 80.19. We see bearish invalidation only above 20-DMA.

Support levels - 79.65 (200-DMA), 79.47 (38.2% Fib retrace of 76.09 to 81.56 rally), 79.35 (100-DMA)

Resistance levels - 80.18 (5-DMA), 80.27 (23.6% Fib), 80.50 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-recovery-capped-below-5-DMA-bearish-divergence-keeps-scope-for-downside-1115227) has hit TP1.

Recommendation: Book partial profits at lows. Watch out for break below 200-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -159.812 (Bearish), while Hourly JPY Spot Index was at 126.064 (Bullish) at 1040 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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