- NZD/JPY fails to hold gains above 200-DMA, slips lower, bias bearish.
- The pair is extending downside for 3rd straight session after failure to hold break above 200-DMA.
- Price action has dipped into daily cloud and currently hovers around 100-DMA at 78.60.
- Technicals are turning slightly bearish. RSI has turned south and Stochs are on verge of rollover from overbought levels.
- Break below 100-DMA will see drag till 55-EMA at 78. Violation at 55-EMA will see further weakness.
- On the upside, we see resumption on gains only on decisive break above 200-DMA.
Support levels - 78.60 (100-DMA), 78.03 (55-EMA), 77.54 (20-DMA),
Resistance levels - 78.81 (5-DMA), 79.29 (200-DMA), 79.61 (Apr 13 high)
Recommendation: Good to go short on rallies around 78.65/75, SL: 79.30, TP: 78/ 77.55
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -100 (Bearish), while Hourly JPY Spot Index was at -17.6697 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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