FxWirePro: NZD/JPY holds major trendline support at 76 level, further weakness only on break below

• NZD/JPY holds major trendline support at 76 levels and edges higher to close at 76.63 on Wednesday's trade.
   
• The pair has formed a spinning top formation at lows which raises scope for some upside.
   
• Technical studies are however biased lower. RSI is below 50 and momentum is bearish.
   
• 20-DMA is pointing south and we see -ve DMI dominance which adds to bearish bias.
   
• Break below major trendline support at 76 finds next support at 75.62 (April 12 low).
   
• On the flipside, 20-DMA at 77.21 is major resistance, decisive break above negates bearish bias.

Support levels - 76.62 (5-DMA), 76 (major trendline), 75.62 (April 12 low)

Resistance levels - 77, 77.21 (20-DMA), 78

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-capped-at-55-EMA-extends-weakness-for-2nd-straight-session-1204343) has hit all targets.

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 55.5491 (Neutral), while Hourly JPY Spot Index was at -71.3233 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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