FxWirePro: NZD/JPY recovery lacks traction, 5-DMA offers stiff resistance at 78.38

• NZD/JPY recovery lacks traction, pair capped below 5-DMA at 78.38.
   
• Breach at 'Wedge Base' support at 78.90 keeps scope for downside.
   
• Technical studies are bearish, pair has slipped below 38.2% Fib at 78.30.
   
• We see scope for test of weekly cloud base at 76.52. Violation at cloud base to see test of 61.8% Fib at 74.84.
   
• On the flipside, we see major resistance at 79.90 (nearly converged 200 & 50-DMA). Bearish invalidation on break above.

Support levels - 78, 77.77 (weekly 100-SMA), 77, 76.52 (weekly cloud base)

Resistance levels - 78.39 (5-DMA), 78.90 (trendline), 79, 79.66 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-Wedge-Base-support-at-7890-bias-lower-stay-short-969077) has hit TP1/2.

Recommendation: Book partial profits at lows. Trail stop loss to 79, hold for further downside.

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