FxWirePro: NZD/JPY slips below 78.6% Fib, bias lower, good to short rallies

• NZD/JPY has failed to extend gains beyond 88.6% Fib, bias has turned bearish.
   
• The pair is now extending declines for 2nd consecutive session.
   
• Price action has fallen below the 82 handle after break below 5-DMA and 78.6% Fib.
   
• Technical indicators are bearish. RSI and Stochs have rolled over from overbought levels and biased south.
   
• We have evidenced a bearish divergence from price action on Stochs which supports our bearish call.
   
• MACD line is on the verge of a bearish crossover on signal line and on confirmation will add to further bearishness.
   

Support levels - 81.67 (20-DMA), 80.68 (61.8% Fib retrace of 83.809 to 75.626 fall), 80.25 (June 21 low)

Resistance levels - 82.49 (5-DMA), 82.87 (88.6% Fib), 83, 83.15 (July 10 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-takes-out-886-Fib-momentum-bullish-stay-long-for-8385-793895) was stopped out.

Recommendation: Good to go short on rallies around 82.10/20, SL: 82.50, TP: 82/ 81.70/ 81

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -152.258 (Bearish), while Hourly JPY Spot Index was at 26.1331 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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