FxWirePro: NZD/JPY slips below 78 handle, bias lower, stay short

• NZD/JPY slips below 78 handle, is on track to test major support at 77.
   
• Downbeat China October data dump dents the antipodeans.
   
• China’s Oct retail sales y/y came in at +10.0 vs 10.4% expected and 10.3% last.
   
• Industrial output y/y at 6.2% and 6.3% expected and 6.6% last, while urban investment y/y stood at +7.3% vs 7.4% expected and 7.5% last.
   
• NZD/JPY slips below 38.2% Fib retrace of 69.232 to 83.910 rally at 78.30.
   
• Technical analysis for the pair shows bearish bias. RSI and Stochs have turned south, RSI below 50-levels and MACD is on verge of bearish crossover.
   
• Next major support seen at 77.50 (trendline) ahead of 77 levels.
   
• We see bearish invalidation on retrace above 20-DMA at 78.66.

Support levels - 77.50 (trendline), 77.35 (Oct 31 low), 77 (trendline)

Resistance levels - 78.63 (5-DMA), 78.66 (20-DMA), 78.79 (61.8% Fib retrace of 75.626 to 83.910 rally)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-Trade-Idea-1003865) has hit TP1.

Recommendation: Book partial profits at lows, hold for 77.50/ 77.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -61.7811 (Neutral), while Hourly JPY Spot Index was at -20.4286 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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