- RBNZ holds at 1.75%, but ‘Next rate move is likely down’ sends NZD/USD down
- Post the RBNZ, the NZD/JPY Technical Analysis: Bullish flag/channel/Ichimoku Cloud all point to 76.90 target has been well and truly negated.
- Instead, bears have taken out the 24th March lows and the trend line support and en route to the 200-D SMA (blue MA) and the confluence of cloud support that meets the 61.8% Fibo – (A strong level of support).
- A break below the cloud support opens risk to the 74.50/40 area and late Jan resistance level.
- For the bullish bias to persist, however, the 74 handle will need to hold, but a break below the 50% Fibo of the same range puts the trend in jeopardy, exposing risk to 73 and then 72.20.
NZD/JPY daily chart
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