- NZD/JPY extending fall for 5th straight week, hits 8-week lows at 75.59.
- NZD on the defensive on dampening data for the New Zealand economy.
- Markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
- On the other side, renewed tensions in the Korean peninsula may have added to the Yen's safe haven appeal.
- North Korea has threatened to call off the planned summit with the US President Trump in response to joint military exercise by the United States and South Korea.
- The pair is trading with a bearish bias. Technical indicators on weekly charts support further weakness in the pair.
- We see major trendline support at 75.60, break below will see further downside in the pair.
- Rejection at trendline support at 75.60 could see upside till 21-EMA at 76.65. Violation there could see further bullishness.
Support levels - 75.60 (trendline), 75, 74.83 (61.8% Fib)
Resistance levels - 75.90 (5-DMA), 76, 76.65 (21-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Kiwi-uptick-on-China-Trade-balance-data-likely-to-be-short-lived-good-to-short-NZD-JPY-on-rallies-1297126) has almost hit all targets.
Recommendation: Good to go short on break below 75.60, SL: 76.10, TP: 75/ 74.85
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