- 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.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
