NZD/JPY chart on Trading View used for analysis
- NZD/JPY pauses recovery shy of 21-EMA at 73.86, momentum with the bears.
- Recovery attempts in the pair lack traction. Price has slipped from session highs at 73.66 and is currently trading at 73.24 levels.
- The pair trades in a downward channel and finds strong resistance at 55-EMA at 74.66. We see bearish invalidation only on break above.
- Kiwi remains weak in response to poor NZ data and growing conviction among markets that the next RBNZ policy move will be a cut - rather than a hike.
- Technicals support further weakness. Stochs and RSI are sharply lower and MACD is on verge of bearish crossover on signal line.
- We see scope for test of channel base at 71.75. Violation there could see major downside. Bearish invalidation only above 55-EMA.
Support levels - 73.29 (5-DMA), 73, 72.35 (Aug 13 low), 71.75 (channel base), 71
Resistance levels - 73.87 (21-EMA), 74.66 (55-EMA), 75
Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-resumes-weakness-after-rejection-at-55-EMA-eyes-channel-base-at-7175-stay-short-1423201) has hit TP1.
Recommendation: Book partial profits at lows. Hold for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -51.2661 (Neutral), while Hourly JPY Spot Index was at -72.5643 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.


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