NZD/JPY on track to close in the red for the 2nd straight week.
Price action is extending grind lower along daily cloud which caps upside.
The pair has breached below 50-DMA support and has broken below minor trendline support at 77.40.
Technical studies are biased lower, we see scope for further weakness.
Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-falters-at-200-DMA-retraces-into-daily-cloud-good-to-short-rallies-1257720) has hit all targets.
We now recommend fresh shorts on rallies around 77.30. Place stop loss at 77.60 and target 77/ 76.20/ 76.
Support levels - 77, 76.93 (Dec 7 low), 76.16 (Apr 3 low), 76
Resistance levels - 77.45 (5-DMA), 77.57 (50-DMA), 78.22 (Apr 5 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -68.4126 (Neutral), while Hourly JPY Spot Index was at -93.2926 (Bearish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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