FxWirePro: NZDJPY hovers around channel base at 76.30, decisive break below to see further downside

• NZD/JPY opens with a bearish gap and is currently trading 0.47% lower on the day at around 76.16 levels.
   
• Downside is holding just above the 0.76 handle and price action is currently hovering around channel base support.
   
• Momentum studies are bearish, and we see continuance of -ve DMI dominance and rising ADX supports trend.
   
• Breach below channel base support could see further weakness. Scope then for test of 75.62 levels (2017 lows).
   
• On the upside, 5-DMA at 76.82 is immediate resistance, break above could see test of 20-DMA at 78.23.
   
• Markets focus on New Zealand GlobalDairyTrade (GDT) price auction, scheduled to be held on Mach 6 for further direction.

Support levels - 76.09 (Nov 20 low), 75.62 (2017 lows), 75

Resistance levels - 76.30 (channel base), 76.57 (50% Fib retrace of 69.232 to 83.910 rally), 76.82 (5-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 all targets.

Recommendation: Watch out for decisive break below channel for further weakness. .

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