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NZD/JPY cracks support trend line at 83.40, further selling pressure revealed

FXstreet.com (Barcelona) - The Kiwi/Yen is currently trading down 65 pips at 82.93 during the Asia session, breaking below a critical support trend line which was sitting near the 0.8350 level.

According to Fan Yang, CMT, of FXTimes, "NZD/JPY has been in an ascending triangle since the middle of April. You do see a slight bullish bias in the 4H chart since 1) it is an ascending triangle, and 2) because price is still above the 200-SMA in the 4H chart, which is coincident with the ascending triangle support. A break below 83.40 could be a sign of breakout and could open up the bottom of the ascending triangle, which is around the 61.8% retracement near the 81.00 handle”

The FXStreet.com Trend Index remains slightly bearish on the 1 hour chart, while the OB/OS index reads oversold. The RSI (14) is showing a bullish divergence (price makes new low, price does not) which could help spark a short term counter-trend bounce. Initial support now sits at 82.70 (support on 1 hour chart), followed by 81.93 (the upward sloping 50dma). First resistance now sits at 83.16 (the 9dma on 1 hour chart), followed by 83.32 (the 20dma on 1 hour chart)

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