2017.02.2102:00:00UTC+00Fxwirepro: Potential 'bearish Gartley' on Nzd/jpy, Good to Go Short on Rallies

We have identified a potential 'Bearish Gartley' pattern on NZD/JPY 4-hourly charts. 

We see potential for some upside in the pair if there is a breakout above 5-DMA at 81.56.

NZD/JPY weekly charts show weakness for the pair upto weekly 20-SMA at 79.66.

On the daily charts, the pair is trading below 5-DMA, price action rages in daily cloud.

We see strong trendline support at 80.68, break below will see test of 100-DMA at 79.24.

Support levels - 80.68 (Trendline), 80, 79.66 (Weekly 20-SMA), 79.31 (100-DMA), 78.71 (cloud base)

Resistance levels - 81.56 (5-DMA), 81.73 (50-DMA), 81.91 (Weekly 5-SMA), 82 (20-DMA), 82.30 (Falling trendline)

TIME  TREND INDEX  OB/OS INDEX  
  
1H          Neutral               Neutral       
4H          Neutral               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-NZD-JPY-breaks-below-50-DMA-good-to-go-short-on-rallies-547581).

Recommendation: The bearish Gartley reinforces our short call. Hold for targets. However, we recommend adjusting SL to 82.40

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at -132.107(Highly Bearish), while Hourly JPY Spot Index was at 52.1828 (Slightly bullish) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.