• FxWirePro: NZD/JPY holds 20-dma support at 80.17, good to go short on break below

    Source: FxWire Pro - Technicals / 17 Jan 2018 03:10:49   Eastern Standard Time

    • NZD/JPY failed to break stiff trendline resistance currently at 81.15, slips lower.
    • The pair closed below 5-DMA at 80.47 on Tuesday's trade and is currently hovering around 20-DMA.
    • Technical studies on intraday charts are bearish, Stochs and RSI have rolled over from overbought levels and are biased lower.
    • We see scope for weakness. Break below 20-DMA support at 80.17 to see test of 200-DMA at 79.48.
    • We evidence Doji formation on weekly charts which raises scope for downside. Violation at 200-DMA opens doors for more slumps. Scope then for test of 78 levels.
    • On the flipside, we see bearish invalidation on breakout above major trendline resistance at 81.15.

    Support levels - 80.17 (20-DMA), 79.48 (200-DMA), 79, 78.08 (61.8% Fib retrace of 76.09 to 81.31 rally)

    Resistance levels - 80.47 (5-DMA), 81.15 (trendline), 81.31 (Jan 9 high)

    Recommendation: Good to go short on break below 20-DMA, SL: 81.15, TP: 79.50/ 79/ 78.60

    FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -71.988 (Neutral), while Hourly JPY Spot Index was at 22.7561 (Neutral) at 0740 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

    FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest