FxWirePro: NZD/JPY capped below 5-DMA, good to go short on rallies

• NZD/JPY recovery halts at 5-DMA, pair edges lower after hitting highs of 76.58 on Thursday's trade. 
   
• The pair is in a major bear trend, finds minor support at 75.60, break below targets 78.6% Fib at 72.61. 
   
• Price action is below 200-DMA, break below 75.60 will see resumption of downtrend.
   
• Bears then target 78.6% Fib retracement of 69.23 to 83.80 rally at 72.61.
   
• Momentum studies are bearish, technical indicators are biased lower. 
   
• Risk-off dominates amid tensions in the Korean peninsula and as US bombing Afghanistan continue to spook markets and keep yen supported.

Support levels - 75.60 (trendline), 74.80 (61.8% Fib), 73.69 (Nov 9th low), 72.61 (78.6% Fib)

Resistance levels - 76.36 (5-DMA), 76.52 (50% Fib), 77, 77.54 (20-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Oversold        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 76.15/25, SL: 76.60, TP: 75/ 74.80/ 74/ 73.70

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 84.408(Bullish), while Hourly JPY Spot Index was at 189.258 (Bullish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.