FxWirePro: NZD/JPY holds major support at 77, good to go short on break below

• NZD/JPY has broken below 200-DMA at 77.39, but downside is holding major trendline support at 77 levels.
   
• Kiwi slightly bid on higher oil prices and Moody’s upbeat remarks on New Zealand’s AAA.
   
• Slightly weaker GDT price index, deterioration in risk environment amid renewed weakness seen in the Asian equities to keep the Kiwi depressed.
   
• Fall in the NZ business morale in Q1 2017 also collaborating to the downbeat tone around the Kiwi. 
   
• Recovery in the pair looks fragile, upside remains capped by 200-DMA at 77.39. Bearish invalidation only on close above.
   
• Break below 77 (trendline support) to see drag upto 76.52 (50% Fib) and then 75.77 (Nov 14 low).

Support levels - 77 (trendline), 76.52 (50% Fib retrace of 69.23 to 83.80 rise), 75.77 (Nov 14 low)

Resistance levels - 77.39 (200-DMA), 77.71 (5-DMA), 78.24 (38.2% Fib)

Recommendation: Good to go short on break below 77, SL: 77.70, TP: 76.50/ 76/ 75.75

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 26.3606(Neutral), while Hourly JPY Spot Index was at 128.387 (Bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.