Cloud caps upside in NZD/JPY, good to short rallies
Daily Ichimoku cloud weighs on the upside, NZD/JPY struggles to break through.
Technical indicators on daily charts are heavily bearish.
The pair finds strong trendline support at 76 levels, break below will see test of 75.50 (trendline).
RSI is below 50 levels and biased lower, while stochs also point south.
On weekly charts, price action has failed to hold above weekly 50-SMA at 77 levels.
Bearish invalidation on weekly close above 77 levels.
Support levels - 76 (trendline), 75.50 (trendline), 74.80 (61.8% Fib retrace of 69.23 to 83.80 rally)
Resistance levels - 76.52 (50% Fib), 77.43 (cloud base & 5-DMA), 78
Good to go short on rallies around 76.70/80, SL: 77.45, TP: 76/ 75.50/ 75/ 74.80
Technical indicators on daily charts are heavily bearish.
The pair finds strong trendline support at 76 levels, break below will see test of 75.50 (trendline).
RSI is below 50 levels and biased lower, while stochs also point south.
On weekly charts, price action has failed to hold above weekly 50-SMA at 77 levels.
Bearish invalidation on weekly close above 77 levels.
Support levels - 76 (trendline), 75.50 (trendline), 74.80 (61.8% Fib retrace of 69.23 to 83.80 rally)
Resistance levels - 76.52 (50% Fib), 77.43 (cloud base & 5-DMA), 78
Good to go short on rallies around 76.70/80, SL: 77.45, TP: 76/ 75.50/ 75/ 74.80