FxWirePro: Cloud caps upside in NZD/JPY, good to short rallies

• Daily Ichimoku cloud weighs on the upside, NZD/JPY struggles to break through.
   
• Technical indicators on daily charts are heavily bearish.
   
• The pair finds strong trendline support at 76 levels, break below will see test of 75.50 (trendline).
   
• RSI is below 50 levels and biased lower, while stochs also point south.
   
• On weekly charts, price action has failed to hold above weekly 50-SMA at 77 levels.
   
• Bearish invalidation on weekly close above 77 levels.

Support levels - 76 (trendline), 75.50 (trendline), 74.80 (61.8% Fib retrace of 69.23 to 83.80 rally)

Resistance levels - 76.52 (50% Fib), 77.43 (cloud base & 5-DMA), 78

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Neutral      

4H          Bearish               Oversold      

1D          Bearish               Neutral       

1W         Neutral                Neutral     

Recommendation: Good to go short on rallies around 76.70/80, SL: 77.45, TP: 76/ 75.50/ 75/ 74.80

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -4.84821 (Bearish), while Hourly JPY Spot Index was at 58.8517 (Neutral) at 1100 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.