FxWirePro: NZD/JPY hovers above 61.8% Fib, break below to see further weakness

Refer NZD/JPY chart on Trading View
 

• NZD/JPY is trading in a narrow range, with a day's high at 75.00 and low at 74.86.
   
• The pair is extending declines for the 5th straight session and bias remains bearish.
   
• Technical studies support further downside in the pair. Stochs and RSI show weakness.
   
• Focus now on RBNZ policy meet, where a dovish outcome could weigh on the bird.
   
• Price action currently holds support at 61.8% Fib and break below will see drag lower.
   
• We then see scope for test of trendline support at 73.60 ahead of 78.6% Fib at 72.37.
   
• On the flipside, 5-DMA is immediate resistance at 75.20. Bearish invalidation only above 110-EMA.

Support levels - 74.83 (61.8% Fib), 73.60 (trendline), 72.37 (78.6% Fib)

Resistance levels - 75.20 (5-DMA), 75.56 (21-EMA), 75.93 (55-EMA), 76.55 (110-EMA)

Recommendation: Good to go short on break below 61.8% Fib, SL: 75.20, TP:  73.60/ 73/ 72.40

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -75.1272 (Neutral), while Hourly JPY Spot Index was at 137.089 (Bullish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.