NZDJPY hitting soft target, bears to expose next targets
In our previous technical comment on the pair, we said “NZDJPY falling below cluster support”. Prices have maintained levels below 38.2% Fibonacci retracement of the entire upside rally from 84.05 to 92.41 as seen on the provided daily chart.
The slight correction seen after we wrote our analysis on past Thursday didn’t last for a long time, as the consecutive negative pressures from stability below Ribbons lines (EMA10 to EMA8)
Bears are now dominating the market movements of NZDJPY pair, taking it to 50% Fibonacci, which we classify as a weak support due to RSI14 moving bearishly along with MACD.
To summarize this, we do believe that, the pair will fall further towards at 87.25, marked by the 61.8% Fibonacci level.
To manage our trading desk, we can close 25% of the quantity used to short NZDJPY and keep the rest with stop loss moving to 89.20.