- NZD/JPY is trading in a rising Wedge pattern, and has broken strong support at Wedge base at 78.80.
- Kiwi continues to remain under pressure, is likely to extend weakness in the wake of the electoral results.
- Technical studies are bearish and we see scope then for test of 38.2% Fib at 78.30.
- On the flipside, we see strong resistance at 79.95 (converged 200 & 50-DMA). Bearish invalidation on break above.
- Break above 79.95 finds next major resistance at 80.44 (23.6% Fib).
Support levels - 78.30 (38.2% Fib retracement of 69.232 to 83.910 rally), 78.18 (Sept low), 78
Resistance levels - 78.86 (5-DMA), 79, 79.95 (200-DMA)
Recommendation: Good to go short on rallies around 78.60/80, SL: 79.50, TP: 78.30/ 78/ 77.50.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -96.1181 (Bearish), while Hourly JPY Spot Index was at -102.666 (Bearish) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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