• FxWirePro: NZD/JPY finds strong support at 75.60, good to go short on break below

    Source: FxWire Pro - Technicals / 16 May 2018 01:05:39   America/New_York

    • NZD/JPY extending fall for 5th straight week, hits 8-week lows at 75.59. 
       
    • NZD on the defensive on dampening  data for the New Zealand economy.
       
    • Markets are likely pushing out expectations of any rate hikes from RBNZ into 2019.
       
    • On the other side, renewed tensions in the Korean peninsula may have added to the Yen's safe haven appeal.
       
    • North Korea has threatened to call off the planned summit with the US President Trump in response to joint military exercise by the United States and South Korea.
       
    • The pair is trading with a bearish bias. Technical indicators on weekly charts support further weakness in the pair.
       
    • We see major trendline support at 75.60, break below will see further downside in the pair.
       
    • Rejection at trendline support at 75.60 could see upside till 21-EMA at 76.65. Violation there could see further bullishness.

    Support levels - 75.60 (trendline), 75, 74.83 (61.8% Fib)

    Resistance levels - 75.90 (5-DMA), 76, 76.65 (21-EMA)

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-Kiwi-uptick-on-China-Trade-balance-data-likely-to-be-short-lived-good-to-short-NZD-JPY-on-rallies-1297126) has almost hit all targets.

    Recommendation: Good to go short on break below 75.60, SL: 76.10, TP: 75/ 74.85

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