- NZD/JPY extends weakness for 3rd straight week, trades 0.04% lower on the day.
- Daily cloud weighs heavily on the upside, price has broken below 50-DMA.
- Technical studies support further weakness in the pair. RSI well below 50, bias lower.
- We see -ve DMI dominance and momentum studies are bearish. Price action is below daily cloud and major moving averages.
- Next immediate bear target lies at 76.57 (50% Fib) ahead of 76.16 (Apr 3 low) and then 75.92 (Mar 5 low).
- Break above cloud base could see test of 50-DMA at 77.51. Bearish invalidation only on decisive break above 50-DMA.
Support levels - 77, 76.57 (50% Fib), 76.16 (Apr 3 low), 75.92 (Mar 5 low), 75.60 (trendline)
Resistance levels - 77.27 (5-DMA), 77.51 (50-DMA), 78, 78.64 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-weakness-slips-below-daily-cloud-good-to-short-rallies-1276009) has hit TP1.
Recommendation: Hold for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -33.2409 (Neutral), while Hourly JPY Spot Index was at 37.5787 (Neutral) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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