FxWirePro: Shooting stars evidencing more dips to break NZD/JPY’s crucial supports, next support seen at 78.386

Weekly analysis: The pair rallied from 72.417 to 83.375, that is when it has started struggling to hold onto the crucial resistance at 83.029 levels.

At that juncture a shooting star pattern candles appeared at peaks of the rallies to signify weakness.

As a result, we could notice a steep dips in this week observing the conformity of huge volumes as well.

More importantly, the formation of shooting star pattern candles at 81.462 and again at 82.031 levels (which were near above mentioned resistance zones) signifies weakness in previous rallies, seems like bulls are exhausted.

Moreover, the RSI oscillator has begun diverging at around 55 levels to the previous upswing rallies. This would mean that early alarms to the bulls as the selling pressures are piling up.

Subsequently, %D crossover at 80's intensifies bears interests in the market, as a result we've seen this week's lows at 77.470 to break the below supports which we think them as crucial.

To substantiate this stance, please be noted that weekly prices are also slipping below 21DMA which is again one more prolonged bearish indication. However, closing basis should be closely monitored.

As shown on both weekly and daily charts, amid these bearish indications it has broken strong support levels at 79.386, currently immediate supports are seen at 78.386, if it does not manage to hold onto this level, we could see more slumps for sure to test 77.500 or even upto 74.500 levels in medium run.