- NZD/JPY failed to hold gains above 20-DMA on Tuesday's trade.
- Inverted hammer formation seen at highs.
- Pair now hovers around 50-DMA at 73.79, break below could resume weakness.
- Intraday techs are slightly bearish. Kiwi under pressure after GDT price index fell 3%, its first decline since July.
- Also, comments from RBNZ Assistant Governor John McDermott that the central bank has a clear inflation objective reinforced market expectations of further easing by RBNZ.
- Major support levels -73, 72.65 (Sept 26 low), 72.25 (trendline)
- Major resistance levels - 74 (converged 100 & 20 DMA), 74.73 (Oct 4 high), 75 (Sept 21 high)
Recommendation: Good to go short on close below 50-DMA at 73.79, SL: 74.20, TP: 73/ 72.65/ 72.25
