NZD/JPY is expected to trade with bearish bias. The pair is rebounding above its 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50. However, 0.6965 is playing a key resistance role. We are cautious now. As long as 0.6965 is not surpassed, we keep our negative view unchanged with a first downside target at 0.6890. If the price breaks below it, look for a further decline towards 0.6850 as possible.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6890. A break below this target will move the pair further downwards to 0.6850. The pivot point stands at 0.6965. In case the price moves in the opposite direction and bounces back from the support level, it will go above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6990 and the second one at 0.7040.
Resistance levels: 0.7000, 0.7045, 0.7080
Support levels: 0.6890, 0.6850, 0.6800
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