FxWirePro: NZD/JPY slumps after bearish gap open, bias lower, stay short

• NZD/JPY is extending downside after bearish gap open today, down 0.25% on the day.
   
• The pair is trading with a major bearish bias and we see scope for test of 'Wedge Base' at 0.7870.
   
• Price action has broken below 200-DMA and daily cloud, raising scope for further weakness.
   
• Technical indicators are bearish, Stochs biased lower, RSI below 50 and MACD is showing a bearish crossover.
   
• We notice ADX is above 25 and rising with a bearish DMI dominance which also supports downtrend.
   
• Bearish invalidation on retrace above 200-DMA at 80.06.

Support levels - 79.53 (23.6% Fib retrace of 83.91 to 78.18 fall), 79, 78.70 (Wedge base)

Resistance levels - 80.06 (200-DMA), 80.26 (5-DMA), 80.90 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-slide-along-5-DMA-bias-lower-good-to-go-short-on-rallies-936286) has hit all targets.

Recommendation: Book partial profits, lower trailing stop to 200-DMA at 80.06, hold for 79/ 78.70/ 78.50.

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