- Data released earlier today showed a drop in the trade surplus. Fall in exports underscores weakness in the economy and only adds to the bets of RBNZ rate cut in August.
- NZD/JPY breaks major trendline support and is trading below 21-DMA currently at 74.17.
- Momentum studies are bearish, we see scope for test of 71.20 levels.
- Bearish invalidation only on break above 20-DMA at 74.17 levels, upside would then see test of 75.20.
Recommendation: Good to sell rallies around 73.50, SL: 74.20, TP: 73/ 72.60/ 72.30
