FxWirePro: NZD/JPY breaks strong supports in major downtrend, wise to wait for rallies for fresh shorts – One touch binary puts to speculate

The pair rallied from 71.209 to 74.270, that's where it has struggled to hold onto the resistance exactly at 21DMA. Bears have again been active to push back southwards at that level.

It has broken strong supports at 72.998 levels, wait for rallies for fresh shorts.

Any spikes in the rallies should be deemed as an opportunity for fresh shorts as selling momentum is indicated by leading indicators.

RSI has been converging below 42 levels to the prevailing dips, while stochastic curves shows intensified momentum in selling as they evidence %D crossover.

MACD with bearish crossover has entered into the bearish trajectory.

On monthly chart, the current price well below EMAs consistently that signals downtrend to prolong, rising volumes to substantiate the downtrend.

MACD signals bearish trend to prolong ahead.

Massive volumes on declining streaks are in conformity to the major bear downtrend.

The leading oscillators have been converging downwards, subsequently, stochastic curves have reached oversold territory but there are traces of bullish crossover.

Trade tips: One Touch Binary Put

Taking above technical reasoning into consideration, when your research is certain it is good to think of adding leverage effects to the profitability.

So, buy at every rally and bring in leveraging effect using 'One touch binary puts' with OTM strikes for a minimum targets 71.247 levels.

The payoffs of touch option have been conditional, if the underlying pair (NZDJPY in this case) would touch the OTM strike price within any time period by the time of expiration, if the investor predicts correctly and the asset touches the strike price the option expires "in the money".

This is likely to generate an exponentially high return of between 80-90% to the binary option investor.