• FxWirePro: NZD/JPY slips below 77 handle, eyes major trendline support at 76, stay short

    Source: FxWire Pro - Technicals / 16 Mar 2018 02:48:51   America/New_York

    • NZD/JPY grinds lower after rejection at 55-EMA on Tuesday's trade.
    • The pair is extending weakness for 3rd straight session, trade 0.75% lower on the day.
    • The Kiwi has been struggling to get support on the back of New Zealand GDP miss.
    • New Zealand's GDP y/y stood at 2.9%, below the expected 3.1%, but still above the 2.7% posted for the previous year.
    • Price has closed below 5-DMA support raising scope for further weakness.
    • Technical studies are turning slightly bearish, Stochs and RSI have now turned south and we see -ve DMI crossover.
    • The pair now eyes major trendline support at 76 levels. Violation at 76 (trendline) could see major weakness.
    • On the flipside, breakout above 55-EMA invalidates bearish bias.

    Support levels - 76 (trendline), 75.92 (March 5 low)

    Resistance levels - 77, 77.54 (5-DMA), 78

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-NZD-JPY-capped-at-55-EMA-extends-weakness-for-2nd-straight-session-1204343) has hit TP1/2.

    Recommendation: Book partial profits, trail SL to 78, hold for further downside.

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