FxWirePro: NZD/JPY breaks major support at 76.05, good to sell rallies
Kiwi rallied after the RBNZ left its interest rates on hold at 2.25%, but the rally lacked follow-through. The bird failed to sustain at higher levels and now extends its corrective slide as risk-off trades intensified. …
Kiwi rallied after the RBNZ left its interest rates on hold at 2.25%, but the rally lacked follow-through.
The bird failed to sustain at higher levels and now extends its corrective slide as risk-off trades intensified.
NZD/JPY is retracing from 7-week high of 76.29 hit on Thursday, has broken below major trendline support at 76.05 on 2H charts.
Next major support aligns at 75.74 (2H 21-SMA), 75.54 (daily cloud top), 75.44 (100-DMA) and then 75 (2H 50-SMA). Break below 100-DMA at 75.45 will see weakness upto 5-DMA at 75.26.
On the upside, the pair is capped by strong trendline resistance, currently at 76.25, bearish invalidation only on break above.
Techs on 2H charts support downside, Stoch and RSI are biased lower.
Recommendation: Good to sell rallies around 75.95/76, SL: 76.50, TP: 75.75/75.55/75
