FxWirePro: NZD/JPY bears don’t like 82.75 region, retesting 79.647 is underway

It seems like bears are uncomfortable with 82.75 levels and as soon as it touches, immediate steep rejections would be seen.

On weekly chart, the pair decline from 83.036 (this weeks highs) to 81.256, it is now most likely to drag up to 81.004 levels and that is where is where we could see to hold onto the support.

But in later stage of October and earlier November, it has broken 81.004 level closing basis. As a result 79.647 and 78.330 areas were held as a strong support zones (see grey shaded rectangular areas).

You can very well observe from charts as soon as it breaks 81.004 how the price has behaved on either side this level levels in the recent historical evidences (see red circled areas).

More importantly, the RSI oscillator has begun diverging again at around 49 levels which is an alarm to the previous upswing rallies. Currenlty, RSI is trending around 48.6006 levels.

Subsequently, an attempt of %D crossover above 80's intensifies bears interests in the market, This would mean that selling pressures are piling up. As a result we've seen week's lows at 81.256 on the verge of slipping below 10DMA.

Daily prices have also slid below 10DMA which is again one more bearish indication. However, closing basis should be closely monitored.

Most likely scenario: If the pair does not manage to hold onto current levels and jump we could certainly foresee to retesting of strong support only at 79.647 levels and at 78.330 levels in near term.

Adverse scenario: Alternatively, even if it shows upside potential we would still see maximum resistance at 82.75 or max 83 levels, one can be bullish only the decisive breach above 81.004 but medium term it has to drop back again.