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)
Good to go short on break below 20-DMA, SL: 81.15, TP: 79.50/ 79/ 78.60
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)
Good to go short on break below 20-DMA, SL: 81.15, TP: 79.50/ 79/ 78.60
Comment:
The pair is holding 200-DMA support. Further weakness only on break below.
Comment:
We see break below 200-DMA, bias lower, stay short.