FxWirePro: NZD/JPY hits fresh 2-month lows at 77.40, on track to test channel base at 76.30

• NZD/JPY extends grind lower along 5-DMA, hits fresh 2-month lows at 77.40.
   
• Momentum studies are bearish, we see scope for further weakness.
   
• Dismal New Zealand trade balance data weighs on the upside. Immediate support is seen at 78.6% Fib at 77.26.
   
• Downside now eyes channel base at 76.30. Further weakness only on break below.
   
• On the upside, 5-DMA at 77.80 is immediate resistance, break above could see test of 20-DMA at 78.81.

Support levels - 77.35 (Oct 31 low), 77.26 (78.6% Fib), 76.30 (channel base)

Resistance levels - 77.80 (5-DMA), 78.18 (61.8% Fib), 78.81(20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-extends-break-below-daily-cloud-on-track-to-test-786-Fib-at-7726-stay-short-1168197) has hit TP1.

Recommendation: Bias lower, stay short.

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