- Recovery in NZD/JPY rejected at 5-DMA at 79.70, the pair was trading 0.18% lower on the day.
- The major is extending weakness after break below 200-DMA, bias still lower.
- Technical indicators are bearish, Stochs biased lower, RSI below 50 and MACD is showing a bearish crossover.
- 50-DMA is on verge of forming a 'Death Cross' with bearish crossover on 200-DMA.
- We see scope for test of 78.70 (Wedge base). Violation there could see further weakness.
- 200 DMAs at 80.03 offers major resistance, we see bearish invalidation only on retrace above.
Support levels - 79, 78.70 (Wedge base), 78.18 (Sept 2017 low)
Resistance levels - 79.53 (23.6% Fib retrace of 83.91 to 78.18 fall), 80.03 (200-DMA), 80.37 (38.2% Fib retrace of 83.91 to 78.18 fall)
Call update: Our short call (https://www.econotimes.com/FxWirePro-NZD-JPY-consolidates-break-below-200-DMA-bias-lower-stay-short-941807) is progressing well.
Recommendation: Bias lower, hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -75.1172 (Slightly Bearish), while Hourly JPY Spot Index was at 36.6057 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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