FxWirePro: NZD/JPY capped below 5-DMA at 79.16, minor upside like on break above

• NZD/JPY is edging higher on the day as the kiwi remains supported by upbeat data.
   
• Better-than-expected Electronic Card Retail Sales for January which showed an uptick in consumer spending using credit cards boosts the antipodean.
   
• That said, a dovish rhetoric from the RBNZ that sees interest rates cut if the NZ economy struggles to pick up steam is likely to keep check on NZD upside.
   
• Technical studies also support weakness. RSI and Stochs nicely converging with price action.
   
• Upside seems to be capped at 5-DMA and breakout could only see minor upside till 200-DMA at 79.77.
   
• Resumption of weakness will see test of 77.35 levels. While on the flipside breakout at 200-DMA negates bearish bias.
   
• Aussie employment figures which are scheduled later this week could have an impact on the kiwi.

Support levels - 78.18 (61.8% Fib), 77.35 (Oct 31 low)

Resistance levels - 79.16 (5-DMA), 79.77 (converged 21-EMA & 200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-downside-in-Bearish-Cypher-pattern-eyes-618-Fib-at-7818-1139975) has hit TP1/2.

Recommendation: We recommend holding for further downside.

Fresh shorts also recommended on rallies around 79, SL: 79.80, TP: 78.18, 77.35/ 77

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