Home Technical Analysis NZDJPY: Downside pressure persist

NZDJPY: Downside pressure persist

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The NZDJPY pair has moved to the downside after failing to maintain levels above 76.4% Fibonacci retracement of the entire bearish wave from 94.03 to the short-term low at 84.05.

The short-lived correction started on May 12 at 38.2% level has been stopped by 61.8% Fibonacci, which intersects with SMA50 as seen on the provided daily chart.

NZDJPY-20-02-2015-FXCOMMENT

Coming beneath 50% Fibonacci suggests another re-test of 38.2% where the interim support exists.

With ADX negative signal and RSI14 stability below 50.00 levels, we see chances of threatening the aforementioned support.

Penetrating 38.2% will expose the next Fibonacci support at 86.40, while 90.20 should act as a ceiling for bears.

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Amir El-Araby Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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