NZD/JPY takes out 200-DMA, eyes cloud base at 79.47, stay short
Kiwi tumbles across the board on RBNZ jawboning & ongoing North Korea tensions.
RBNZ this morning kept the OCR on hold at 1.75%, as was widely expected and kept OCR forecast unchanged.
Markets initially perceived the statement was less dovish than expected, which caused the initial spike in the Kiwi.
In the statement that followed, the RBNZ made it clear that it would like to see a lower NZD and kept intervention option open, weighing heavily on the bird.
NZD/JPY has broken 200-DMA support at 79.97 to hit fresh 8-week lows at 79.75.
Technical studies still heavily bearish. Decisive break below 200-DMA could see drag upto cloud at 79.47.
Bearish invalidation seen on close above 5-DMA at 81.03.
Support levels - 79.47 (cloud base), 79, 78.79 (61.8% Fib retrace of 75.626 to 83.910 rally)
Resistance levels - 79.97 (200-DMA), 80.44 (38.2% Fib retrace of 69.232 to 83.910 rally), 81.02 (5-DMA)
Good to go stay short for 79.47/ 79.
RBNZ this morning kept the OCR on hold at 1.75%, as was widely expected and kept OCR forecast unchanged.
Markets initially perceived the statement was less dovish than expected, which caused the initial spike in the Kiwi.
In the statement that followed, the RBNZ made it clear that it would like to see a lower NZD and kept intervention option open, weighing heavily on the bird.
NZD/JPY has broken 200-DMA support at 79.97 to hit fresh 8-week lows at 79.75.
Technical studies still heavily bearish. Decisive break below 200-DMA could see drag upto cloud at 79.47.
Bearish invalidation seen on close above 5-DMA at 81.03.
Support levels - 79.47 (cloud base), 79, 78.79 (61.8% Fib retrace of 75.626 to 83.910 rally)
Resistance levels - 79.97 (200-DMA), 80.44 (38.2% Fib retrace of 69.232 to 83.910 rally), 81.02 (5-DMA)
Good to go stay short for 79.47/ 79.
