FxWirePro: NZD/JPY recovery capped at 79 handle, bias bearish, stay short

• NZD/JPY minor recovery attempts have been capped below 79 handle.
   
• The pair failed to break above and is currently trading at 78.65 levels, down 0.31% on the day.
   
• Dovish rhetoric from the RBNZ that sees interest rates cut if the NZ economy struggles to pick up steam is likely to keep check on NZD upside.
   
• Technical studies also support weakness. RSI and Stochs nicely converging with price action.
   
• Resumption of weakness will see test of 77.35 levels. While on the flipside breakout at 200-DMA negates bearish bias.
   
• Watch out for Australia employment data scheduled later this week which could have an impact on the kiwi.

Support levels - 78.18 (61.8% Fib), 77.35 (Oct 31 low)

Resistance levels - 78.79 (5-DMA), 79.19 (100-DMA), 79.77 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-downside-in-Bearish-Cypher-pattern-eyes-618-Fib-at-7818-1139975) has hit TP1/2.

Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-capped-below-5-DMA-at-7916-minor-upside-like-on-break-above-1144641) is progressing well.

Recommendation: We recommend holding for further downside.

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