FxWirePro: NZD/JPY hits fresh 7-month lows at 76.09, bias lower, good to short rallies

• NZD/JPY has hit fresh 7-month lows at 76.09 before paring some losses to currently trade at 76.40 levels.
   
• Price action has broken out of Symmetric Triangle pattern and we see scope for further downside.
   
• Technical studies are bearish, 5-DMA sharply lower, RSI and Stochs biased lower, MACD supports downside.
   
• Next bear target lies at 75.62 (April 12 lows) ahead of 74.83 (61.8% Fib retrace of 69.232 to 83.910 rally).
   
• On the flipside, 20-DMA at 78.16 is strong resistance, we see bearish invalidation only on break above.

Support levels - 76.09 (session low), 75.62 (April 12 lows), 74.83 (61.8% Fib retrace of 69.232 to 83.910 rally)

Resistance levels - 77, 77.15 (5-DMA), 77.50 (trendline), 78.16 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-eyes-major-trendline-support-at-7750-stay-short-1009048) has hit all targets.

Recommendation: Book partial profits at lows, trail stop loss to 77.20, hold for 75.65/ 75/ 74.83.

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