- NZD/JPY extends its corrective slide as risk-off trades intensified following the release of below estimates Chinese economic data.
- Data released earlier today showed China industrial production rose 6.0% y/y in May, same as seen a month before and lower than the forecast of 6.1%.
- Retail sales rose 10.0% y/y last month, missing expectations of a 10.1% increase. While fixed asset investment rose 9.6% y/y in May, down from 10.5% in April, and the slowest rate on record.
- Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-major-support-at-7605-good-to-sell-rallies-220150) has hit all targets.
- Techs support downside - Bollinger bands are widening, Stochs and RSI biased lower.
- Pair finds major support at 74.47 (20-DMA), break below to see test of trendline support at 74 and then lower Bollinger band at 73.40.
Recommendation: Book partial profits at around 74.50 levels, lower trailing stop to 75.20, target 74/73.40
