FxWirePro: NZD/JPY extends downside in 'Bearish Cypher' pattern, eyes 61.8% Fib at 78.18

• NZD/JPY is extending downside in 'Bearish Cypher' pattern, scope for test of 61.8% Fib at 78.18.
   
• kiwi dented as RBNZ stays pat and warns of rate cut if inflation drops further. Weakness in the kiwi is helping the pair higher.
   
• The RBNZ Governor Spencer took note of the rise in the nominal exchange rate earlier today.
   
• RBNZ Assistant Governor McDermott has warned that central bank could use different language if the NZD exchange rate appreciates on a trade-weighted index (TWI) basis.  
   
• NZD/JPY has shown decisive break below major support levels at 100 and 200 DMAs.
   
• Price action has dipped into daily cloud and technical indicators are bearish. Break below 61.8% Fib will see further weakness.
   
• On the flipside, decisive close above 200-DMA could see a bearish invalidation.

Support levels - 78.18 (61.8% Fib retrace of 76.090 to 81.561 rally), 77.35 (Oct 31 low), 77.26 (78.6% Fib)

Resistance levels - 79.29 (100-DMA), 79.47 (38.2% Fib), 79.76 (200-DMA)

Recommendation: Good to go short around 79, SL: 80, TP: 78.20/ 78/ 77.30

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