FxWirePro: NZD/JPY bulls bounce back above 73.863, resembling gap up opening but major trend still bearish bias

After break-out above 73.863 today (as a result, a resembling gap up opening candle occurred), more bullish sentiments for the intraday trading sentiments.

Jump above DMA is likely to drag rallies up to 75.296 but it is not advisable to accumulate longs on long term basis (See monthly charts, “never buck the major trend”).

The pair has been surging today only after testing crucial supports at 73.863 and 73.037 levels, observing the current price sentiments it is likely to extend gains up to 75.296 as RBNZ OCR decision which has remained unchanged.

On a broader perspective, from the last couple of months, the pair has been tumbling continuously from 92.411 to the current 74.439 levels.

For now, it is most likely to test the next minor resistance at 75.296 levels as leading oscillators converge positively to the on-going price rallies. 

On the contrary, bears may resume at any time to push back southwards at that level as the major trend is downtrend (refer monthly charts), so be cautious while deploying investment strategies involving this FX exposure.

Moreover, 21EMA crosses over 7EMA that signals downtrend continuation.

MACD signals the bearish trend to prolong ahead.

Massive volumes on declining streak are in conformity to the strong downtrend.

Although we could foresee the intraday rallies may drag bullish sentiments but bears may get active to resume dips at any time, so on delivery trades may retest up to the immediate major support only at 73.863 levels.

At spot ref: 74.417 levels, we wouldn't be surprised even if it hits 75.296 levels shortly on the north, hence using one touch binary calls on intraday terms is likely to fetch handsome yields for the day.