- GDT disappointment keeps kiwi dented, NZD/JPY down 0.14% on the day.
- On the other side, Yen remains bid as North Korea continues to concern the global arena.
- The pair has broken below major trendline support at 78.75, now finds next major support at 78 levels (trendline).
- Technical studies on weekly charts are heavily bearish. Stochs and RSI are sharply lower.
- That said, we notice bullish divergence on Stochs on the 4 hourly charts which raises scope for upside.
- 20-DMA at 79.38 is immediate resistance. We see minor upside on close above. Bearish invalidation only on close above 200-DMA.
- Weekly cloud base at 76.52 is next major support on the downside below 78. Break below cloud targets 61.8% Fib at 74.83.
Support levels - 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.10 (rising trendline), 77.98 (May 30 low)
Resistance levels - 79.04 (5-DMA), 79.60 (20-DMA), 79.86 (100-DMA), 80.16 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-major-trendline-support-at-7875-bias-lower-stay-short-880667) is progressing well.
Recommendation: Stay short for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 120.733 (Bullish), while Hourly JPY Spot Index was at 46.3987 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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