FxWirePro: “NZD/JPY slumps” this is not astrology but a sheer research – next targets at 79.275

Before proceeding further we would urge you to go through our previous write up on this pair by following below link:

http://www.econotimes.com/FxWirePro-Hanging-man-formation-signifies-NZD-JPYs-weakness-likely-to-retest-support-at-80250-110353

Now please be informed that the dips from then 81.440 to the current levels of 79.750 are just the mere effects of above explained bearish pattern.

For now the pair has breached important support zones of 80.250 and 80.150 on the daily charts which have not been able to break this level quite a lot times in the recent past (see circled areas for price valuation on historical evidences). We believe this has exposed the pair to head towards 79.275.

The pair rallied from 75.181 to 82.688, but does not manage to sustain previous crucial supports at 80.250 or 80.150 regions.

The formation of bearish patterns like hanging man and doji candles at 81.648 and 81.923 levels on weekly and daily charts respectively still signifies weakness at current juncture.

The RSI oscillator is clearly converging to the price dips this would also mean that selling pressures are piling up.

Subsequently, a clear %D crossover above 80's strengthens bears interests in the market, as a result we've seen weekly lows at 79.623 which is attempting to slip below 10DMA which is again one more bearish indication. However, closing basis should be closely monitored.