FxWirePro: NZD/JPY breaks below 50-DMA, good to go short on rallies

• NZD/JPY weekly charts show weakness for the pair upto weekly 20-SMA at 79.66.
• Weekly 5-DMA at 81.91 is major resistance, break above invalidates bearish bias.
• On the daily charts, the pair is trading a narrow range with Doji formation in the Asian session.
• Price action slips into daily cloud, below 20 and 5 day MAs.
• We see strong trendline support at 80.68, break below will see test of 100-DMA at 79.24.

Support levels - 80.68 (Trendline), 80, 79.66 (Weekly 20-SMA), 79.24 (100-DMA), 78.71 (cloud base)

Resistance levels - 81.66 (5-DMA), 81.76 (50-DMA), 81.91 (Weekly 5-SMA), 82 (20-DMA), 82.40 (Falling trendline)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                Neutral       
4H          Neutral                Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 81.40/50, SL: 82.10, TP: 80.70/ 80/ 79.70

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -83.3811(Bearish), while Hourly JPY Spot Index was at 43.981 (Neutral) at 0615 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.