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FxWirePro: NZD/JPY under pressure from RBNZ's dovish 50-bps rate cut

• NZD/JPY declined on Wednesday  after RBNZ's stepped up policy easing with a half-point rate cut.

• The Reserve Bank of New Zealand wrapped up its latest policy meeting by cutting the official cash rate by 50 basis points to 4.75%, after a quarter-point reduction in August.

• At GMT 07:43, the pair was trading down 0.65% at 90.32, retreating from daily high.

•  The technical outlook remains bearish and points to eventual bigger drop, fourteen-day momentum is negitive, reinforcing the scope for a bigger drop  .
 
•  Immediate resistance is located at 91.05(38.2%fib), any close above will push the pair towards 91.32 (Sep 30th high).

•  Support is seen at 90.21 (50%fib) and break below could take the pair towards 89.82(Sep m24th low).

 Recommendation: Good to sell around 90.40 with stop loss of 90.80 and target price of 89.80

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