FxWirePro: NZD/JPY holds support at cloud base, good to go short on break below

NZD/JPY chart on Trading View used for analysis 

• NZD/JPY is extending weakness for the 3rd straight session, bias lower.
   
• Technical analysis supports weakness. Price action has fallen below major EMAs.
   
• Stochs have rolled over from overbought levels. RSI has fallen below 50 levels and bias is lower. 
   
• MACD is on verge of a bearish crossover on signal line which if completed will add to the bearish bias.
   
• Upside has failed to hold break above 110-EMA, slips below 21-EMA.
   
• Price is holding support at daily cloud base, break below will see further weakness.
   
• We see bearish invalidation only on breakout above 110-EMA. 

Support levels - 74.10 (cloud base), 73.20 (Sept 17 low), 72.25 (Sept 10 low)

Resistance levels - 74.50 (55-EMA), 74.85 (5-DMA), 75.18 (110-EMA)

Recommendation: Stay short on break below daily cloud, SL: 74.50, TP: 73.20/ 72.25.

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -32.9275 (Neutral), while Hourly JPY Spot Index was at 27.0931 (Neutral) at 1145 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.