NZD/JPY trying to stay above 76.00, but recovery chances are looking slim

• The Kiwi is holding at the bottom ahead of the NZ government budget later this week.
• Yen data is a light affair this week, but the Kiwi can't capitalize on a calm Yen.

The NZD/JPY gapped lower to kick off the new week, but closed quickly and is now trading back near Friday's close, near 76.15.

The Kiwi has been steadily declining against the Yen, down over 4% from April's high of 79.60. The Reserve Bank of New Zealand (RBNZ) has turned dovish in the face of a lopsided New Zealand economy that continues to slump in economic growth, despite having a sunny outlook only a few months ago.

This week is a light showing for the Kiwi, although the New Zealdn government releases their annual budget on Thursday at 02:00 GMT, while the Yen sees little impactful data this week.

NZD/JPY levels to watch

The pair has put in a steady decline from April's peak, and the current action could get bounced back from support from a support zone between 76.15 and 75.50, which buoyed prices in March and April, though bearish pressure does remain high with decline swing highs setting the pace for 2018. A bullish correction from here will face resistance at the 50.0 Fibo level near 77.70, but a downturned 200-day SMA from 78.75 could continue to cap gains.