FxWirePro: NZD/JPY resumes weakness after rejection at 55-EMA, eyes channel base at 71.75, stay short

NZD/JPY chart on Trading View used for analysis

• NZD/JPY has resumed weakness after the pair was rejected at 55-EMA resistance in last week's trade.
   
• Price action has slipped below 21-EMA and technicals support further weakness.
   
• Stochs have rolled over from overbought levels and RSI has slipped below 50 levels. 
   
• MACD is on verge of bearish crossover on signal line which if complete will add to the bearish bias.
   
• The pair is trading in a sloping channel pattern and we see scope for test of channel base at 71.75.
   
• Bearish invalidation only above 55-EMA at 74.83.

Support levels - 73, 72.35 (Aug 13 low), 71.75 (channel base)

Resistance levels - 73.74 (20-DMA), 74.07 (5-DMA), 74.83 (55-EMA)

Recommendation: Good to stay short on upticks, SL: 74.10, TP: 73/ 72.35/ 72/ 71.75

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -68.7995 (Neutral), while Hourly JPY Spot Index was at 30.1211 (Neutral) at 0815 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.