FxWirePro: NZD/JPY finds major support at 78.90 (wedge base), weakness likely on break below
NZD/JPY opens with a bullish gap and is trading 0.56% higher on the day at 79.43. The major is trading in a rising Wedge pattern, and finds strong support at Wedge base at 78.90. The pair has edged higher after holding m…
NZD/JPY opens with a bullish gap and is trading 0.56% higher on the day at 79.43.
The major is trading in a rising Wedge pattern, and finds strong support at Wedge base at 78.90.
The pair has edged higher after holding major support at 78.84 (Wedge Base) on Friday's trade.
Technical studies are bearish and we see weakness on break below Wedge Base support. Scope then for test of 38.2% Fib at 78.30.
On the flipside, we see strong resistance at 79.73 (converged 5-DMA and cloud base).
Break above 79.73 finds next major resistance at 200-DMA at 79.98. Bearish invalidation on break above 200-DMA.
Recommendation: Watch out for break below wedge base support at 78.90 to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -70.5194 (Neutral), while Hourly JPY Spot Index was at -55.9654 (Neutral) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
