FxWirePro: NZD/JPY bounces off 4H 50-SMA support, bias lower, good to short rallies

• NZD/JPY breaks below 5-DMA, hits session lows at 80.25 before paring some losses to currently trade at 80.51.
   
• The pair has bounced off 4H 50-SMA support, break below to see further weakness.
   
• Technical studies on intraday charts are bearish, Stochs and RSI are biased lower, ADX supports trend lower.
   
• We evidence Doji formation on weekly charts and the pair has completed a 'Bearish Shark' pattern on daily charts which raises scope for downside.
   
• 200-DMA at 79.39 is next major support, violation there could see further weakness.
   
• On the flipside, breakout at 81.69 could propel the pair higher. We then see scope for test of 82.23 (78.6% Fib)

Support levels - 80.35 (4H 50-SMA), 79.79 (4H 100-SMA), 79.39 (200-DMA)

Resistance levels - 80.79 (5-DMA), 81.70 (200W SMA), 82.23 (78.6% Fib), 82.75 (Sept 21 high)

Recommendation: Good to go short on rallies around 80.55/60, SL: 81.35, TP: 79.80/ 79.40/ 79.15

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