- NZD/JPY is extending slide for 5th consecutive session after rejection at channel top.
- The pair has broken and closed below 20-DMA on Tuesday's trade.
- Technical indicators have turned bearish, RSI and Stochs are biased lower.
- Bearish divergence observed on RSI and Stochs on daily charts adds scope for further downside.
- Immediate support on the downside seen at 81.95 (23.6% Fib), we see further weakness on break below.
- On the flipside, we see bearish invalidation only on break above channel top at 83.95.
Support levels - 81.95 (23.6% Fib retrace of 75.626 to 83.910 rally), 81.67 (July 18 low), 81
Resistance levels - 82.70 (20-DMA), 82.80 (5-DMA), 83.80 (Jan 27 high), 83.95 (Channel top)
Call update: We had advised a short call http://www.econotimes.com/FxWirePro-NZD-JPY-recovery-capped-at-83-handle-good-to-go-short-on-decisive-break-below-20-DMA-at-8272-830310).
Recommendation: Bias lower, stay short.
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