- NZD/JPY consolidating break below 200-DMA in a major bear trend.
- 5-DMA currently at 76.10 weighs on the upside. The pair is extending grind lower along 5-DMA.
- We see strong support at 75.60, only break below will see resumption of downtrend.
- Bears then target 78.6% Fib retracement of 69.23 to 83.80 rally at 72.61.
- Momentum studies are bearish, technical indicators are biased lower.
- Upbeat China data dump saw some upside in the pair. China's GDP growth, industrial growth, fixed asset investment and retail sales, all surpassed consensus estimates.
- However, yen strength keeps upside capped. Safe haven demand for yen intact on escalating North Korea tensions.
Support levels - 75.60 (trendline), 74.80 (61.8% Fib), 73.69 (Nov 9th low), 72.61 (78.6% Fib)
Resistance levels - 76.10 (5-DMA), 76.52 (50% Fib), 77, 77.34 (20-DMA)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Bearish Oversold
1W Bearish Neutral
Recommendation: Good to go short on decisive break below 75.60, SL: 76.60, TP: 75/ 74.80/ 74/ 73.70
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 47.544 (Neutral), while Hourly JPY Spot Index was at 62.4887 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
