- NZD/JPY is extending range trade above weekly 200-SMA, we see weakness on break below.
- We have evidenced a 'Bearish Bat Pattern' on daily charts which raises scope for downside in the pair.
- Technical indicators support downside in the pair. MACD has shown a bearish crossover and Stochs are biased lower.
- Doji and spinning top formations on weekly charts add to downside bias. RSI on the weeklies has also turned south.
Support levels - 82.27 (Weekly 200-SMA), 81.62 (23.6% Fib retrace of 76.270 to 83.272 rally), 80.66 (Feb 9th low)
Resistance levels - 82.52 (5-DMA), 83, 83.27 (July 13 high)
Recommendation: Watch out for break below weekly 200-SMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 99.6675 (Bullish), while Hourly JPY Spot Index was at 122.164 (Bullish) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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