NZD/JPY chart - Trading View
NZD/JPY is extending weakness for the 3rd straight session, outlook bearish.
The kiwi under pressure across the board after ABS bank forecasts negative interest rates for New Zealand.
The RBNZ last week published a more dovish than expected monetary policy statement and raised its large-scale asset purchase program to $100 billion.
Dovish policy statement published by the RBNZ has led analysts at ABS bank to project negative interest rates.
The pair has broken below 50-DMA and has dipped into daily cloud. Technical indicators have turned bearish, price action is on track to test 200-DMA at 68.80.
Major trend is bullish and violation at 200-DMA will negate any bullish bias. Next major support below 200-DMA lies at 38.2% Fib at 67.01.
Major Support Levels:
S1: 69.45 (55-EMA)
S2: 68.80 (200-DMA)
S3: 67.01 (38.2% Fib)
Major Resistance Levels:
R1: 69.87 (50-DMA)
R2: 70.03 (21-EMA)
R3: 70.55 (Kijun Sen)
Summary: Break below cloud has opened downside in the pair. Dip till 200-DMA likely.
