FxWirePro: NZD/JPY Breaks Major Support at 76.05, Good to Sell Rallies
- Kiwi rallied after the RBNZ left its interest rates on hold at 2.25%, but the rally lacked follow-through.
- The bird failed to sustain at higher levels and now extends its corrective slide as risk-off trades intensified.
- NZD/JPY is retracing from 7-week high of 76.29 hit on Thursday, has broken below major trendline support at 76.05 on 2H charts.
- Next major support aligns at 75.74 (2H 21-SMA), 75.54 (daily cloud top), 75.44 (100-DMA) and then 75 (2H 50-SMA). Break below 100-DMA at 75.45 will see weakness upto 5-DMA at 75.26.
- On the upside, the pair is capped by strong trendline resistance, currently at 76.25, bearish invalidation only on break above.
- Techs on 2H charts support downside, Stoch and RSI are biased lower.
Recommendation: Good to Sell rallies around 75.95/76, SL: 76.50, TP: 75.75/75.55/75