FxWirePro: NZD/JPY breaks major trendline support at 72.50, hits 2-1/2 year lows, bias lower

NZD/JPY chart on Trading View used for analysis

• NZD/JPY hovers around 70.87, recovering from 2-1/2 year lows at 69.41 hit earlier today.
   
• Apple-Inc news triggered a ‘flash crash’ across JPY crosses sending them to multi-month lows.
   
• A rare revenue warning from Apple Inc. sent investors clamoring for the safe-haven Yen as worries over a global economic slowdown heightened.
   
• The pair trades with a bearish bias and we see scope for further weakness.
   
• Price action has broken major trendline support at 72.50 and momentum studies are bearish.
   
• Next bear target lies at 69.23 (June 2016 lows) ahead of 67.27 (Dec 2013 low).
   
• Caution advised as there is a chance that the Bank of Japan will intervene in the fx markets after the biggest Yen surge in nearly 10 years.

Support levels - 70, 69.23 (June 2016 lows), 67.27 (Dec 2013 low)

Resistance levels - 71, 72.50 (trendline), 73.02 (5-DMA)