NZD/JPY has been consolidating between 78.00 and 75.00 although eventually the price broke below the ascending channel sending it below the 200 Moving Average. The pair rejected the S2 support (based on the Fibonacci applied to the channel breakout point) at first but then it was broken and followed by a correctional move up to R1 (75.00) where it found strong resistance.
The R1 was rejected once and currently NZD/JPY is retesting this level once again. This could be a good entry point to go short and therefore consider selling at the current rate 74.00, targeting the 0% Fibonacci - S3 (71.70) area. The stop loss should be just above the R2 (75.70).
Support: 74.20, 73.20, 71.70
Resistance: 74.00, 75.70
