• FxWirePro: NZD/JPY finds stiff resistance at 81.20, breakout to see further upside

    Source: FxWire Pro - Technicals / 16 Jan 2018 06:29:39   Eastern Standard Time

    • Technical studies on intraday charts are bearish, we see scope for weakness.
    • Stochs and RSI have rolled over from overbought levels and are biased lower.
    • We evidence Doji formation on weekly charts which raises scope for downside.
    • 20-DMA at 80.10 is immediate support, break below will see test of 200-DMA at 79.46.
    • Violation at 200-DMA opens doors for more slumps. Scope then for test of 78 levels.
    • On the flipside, we see major trendline resistance at 81.20, bearish invalidation on breakout above.

    Support levels - 80.10 (nearly converged 20-DMA and 23.6% Fib), 79.46 (200-DMA), 79, 78.08 (61.8% Fib retrace of 76.09 to 81.31 rally)

    Resistance levels - 80.50 (5-DMA), 81.20 (trendline), 81.31 (Jan 9 high)

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