FxWirePro: NZD/JPY holds 38.2% Fib at 78.30, break below will see further downside

• NZD/JPY hovers around strong support by Wedge Base support at 78.55, bias lower.
   
• Sell off seen across markets as the tensions escalate after latest ballistic missile test by North Korea.
   
• Safe haven assets like the Yen moved up, weighing on NZD/JPY.
   
• NZD/JPY is trading 0.63% lower on the day. Technical studies are heavily bearish.
   
• RSI and Stochs on weekly charts are sharply lower and MACD is showing a bearish crossover on the signal line.
   
• Below 78.55 (wedge base) we see next strong support at 78.30 (38.2% Fib retrace of 69.232 to 83.910 rise).
   
• Upside in the pair is seen capped by 100-DMA at 79.75 which is stiff resistance. Upside only on break above.

Support levels - 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.15 (rising trendline), 77.98 (May 30 low)

Resistance levels - 78.97 (5-DMA), 79, 79.75 (100-DMA), 80.13 (200-DMA)

Call update: We had advised a short in the pair (http://www.econotimes.com/FxWirePro-NZD-JPY-slumps-after-rejection-at-200-DMA-good-to-go-short-on-rallies-865022).

Recommendation: Our short call is progressing well. Hold for targets.

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