FxWirePro: NZD/JPY slumps after rejection at 200-DMA, good to go short on rallies

• NZD/JPY slumps 0.98% on the day, currently trades around 78.94, bias lower.
   
• Kiwi under pressure for the second consecutive session is extending downside after brief consolidation post RBNZ.
   
• Kiwi dented after New Zealand Treasury's bearish GDP forecasts.
   
• Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
   
• Upside in the pair is seen capped by 200-DMA at 80.12 which is stiff resistance. Upside only on break above.
   
• Momentum studies bearish, RSI and Stochs strongly bearish, more slumps on cards.
   
• Immediate support seen at 78.81 (61.8% Fib retrace of 75.67 to 83.90 rally). Break below to see test of trendline support at 78.15.
   
• Violation at trendline support to see more downside.

Support levels - 78.81 (61.8% Fib retrace of 75.67 to 83.90 rally), 78.15 (rising trendline), 77.98 (May 30 low)

Resistance levels - 79, 79.61 (nearly converged 5&100-DMA), 80.12 (200-DMA), 80.60 (Triple top Aug 15, 16, 17)

Recommendation: Good to go short on rallies around 79, SL: 79.70, TP: 78.20/ 78/ 77.45

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