- NZD/JPY recovery was rejected at cloud base, the pair slips lower to break below 5-DMA at 79.28.
- Long upper wicks on daily candles suggests selling pressure at highs, the pair is extending downside for 2nd consecutive session.
- The pair finds immediate support at 78.75 (38.2% Fib retrace of 83.809 to 75.626 fall).
- Break below could see drag upto 78 levels (rising trendline). Further weakness only on violation there.
- Technical indicators on weekly charts are bearish. Upside capped below 20-SMA. Doji formation seen on weekly candle.
- Upside in the pair finds stiff resistance at 200-DMA at 80.17, bullish reversal only on close above.
Support levels - 78.75 (38.2% Fib retrace of 83.809 to 75.626 fall, 78.30 (38.2% Fib retrace 69.232 to 83.901 rally), 78.15 (rising trendline)
Resistance levels - 79.28 (5-DMA), 79.91 (20-DMA), 80.17 (200-DMA), 80.68 (61.8% Fib of 83.809 to 75.626 fall)
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -121.937 (Bearish), while Hourly JPY Spot Index was at -94.044 (Bearish) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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