FxWirePro: NZD/JPY finds strong support at 20-DMA, good to go short on break below

• NZD/JPY extending downside for 3rd consecutive session, slips below 83 handle.
• Technical indicators have turned bearish, RSI and Stochs biased lower.
• The pair has broken below 5-DMA which caps upside at 83.20.
• We have observed bearish divergence on RSI and Stochs on daily charts.
• The pair currently finds strong support at 20-DMA at 82.72, we see further weakness on break below.

Support levels - 82.72 (20-DMA), 82.28 (weekly 200-SMA), 81.95 (23.6% Fib retrace of 75.626 to 83.910 rally)

Resistance levels - 83.20 (5-DMA), 83.90 (trendline), 83.80 (Jan 27 high)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Neutral      

4H          Bearish               Neutral      

1D          Bearish               Neutral       

1W         Neutral               Overbought     

Recommendation: Good to go short on break below 20-DMA at 82.72, SL: 83.20, TP: 82.30/ 82/ 81.70

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 69.9514(Neutral), while Hourly JPY Spot Index was at 82.5781 (Slightly bullish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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