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- NZD/JPY breaks monthly-open support- Focus is lower sub 78.80
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Technical Outlook: NZD/JPY broke below monthly open support and the November opening-range lows yesterday with the decline now testing near-term support at 77.35/39 a region is defined by the 78.6% retracement of the April advance and the October swing lows. The pair is vulnerable for a near-term rebound here but the focus remains lower while within this broad descending pitchfork formation extending off the July high. Interim resistance stands 78.21 with a break lower targeting subsequent support objectives at 77.03, parallel support (red) around ~76.50s and the 61.78% retracement at 76.01.
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NZD/JPY 240min Chart
Notes: A closer look at price action further highlights this near-term confluence – note that momentum remains in oversold territory. Interim resistance stands at 78.21 with a bullish invalidation at the weekly opening-range high / 61.8% retracement at 78.79. Bottom line: I’ll favor fading strength while within this formation with a break lower targeting support objectives towards the median-line.
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- Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com
