- NZD/JPY has broken below 200-DMA at 77.39 and major trendline support at 77 levels.
- Bias remains lower, downside intact as long as pair holds below 200-DMA.
- Bearish momentum evident on weekly charts, recovery in the pair looks fragile.
- However, caution adised as RSI and Stochs remain in oversold territory.
- Downside now finds little support till 74.80 (61.8% Fib retrace of 69.23 to 83.80 rally).
- Support levels - 75.77 (Nov 14 low), 74.80 (61.8% Fib), 74
- Resistance levels - 76.52 (50% Fib), 76.75 (5-DMA), 77, 77.48 (200-DMA
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-holds-major-support-at-77-good-to-go-short-on-break-below-627587) has almost hit all targets.
Recommendation: Book partial profits at lows. Lower trailing stops to 76.75. Hold for 75.75/ 75/ 74.80.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -129.941 (Bearish), while Hourly JPY Spot Index was at 66.0214 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
