NZD/JPY consolidates break below 200-dma, bias lower, stay short
- NZD/JPY is consolidating a break below 200-DMA, intraday bias lower.
- Technical indicators are bearish, Stochs biased lower, RSI below 50 and MACD is showing a bearish crossover.
- New Zealand electronic card retail sales data came in below markets’ expectations, which added to weakness around the kiwi.
- Nearly converged 5&200 DMAs at 80.05 offer major resistance, we see bearish invalidation only on retrace above.
- We see scope for test of 78.70 (Wedge base). Violation there could see further weakness.
Support levels – 79.53 (23.6% Fib retrace of 83.91 to 78.18 fall), 79, 78.70 (Wedge base)
Resistance levels – 80.05 (200-DMA), 80.37 (38.2% Fib retrace of 83.91 to 78.18 fall), 80.86 (20-DMA)
Recommendation: Good to go short on rallies around 79.70/80, SL: 80.40, TP: 79/ 78.70/ 78.20.
Source: FXWire Technicals