- Our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-sees-strong-downside-bias-good-to-sell-rallies-202037) has hit all targets.
- NZD/JPY hit session highs at 74.30 after data showed New Zealand economy added 38,000 jobs in Q1, the largest increase in 12 years.
- Price action on the day has been rejected at highs by 74.30, which is also the 5 day moving average.
- Momentum studies are bearish. Pair trades well below the daily cloud and major moving averages are biased lower.
- The pair finds strong trendline support at 73.40, breaks below will likely see test of 72.88.
- Immedaite resistance is seen at 74.30 (5-DMA), ahead of 74.81 (May 2nd highs).
Recommendation: Short breaks below 73.40, target 73/72.90
