FxWirePro: NZD/JPY bulls gain momentum in sideways, upside potential restrained at 74.871, break above likely to drag rallies

This week, the pair takes support at 73.597 levels to bounce back, but stiff resistance seen at 74.871 marks, encourage the short bullish environment but the major downtrend should not be ruled out.

The current prices are showing the strength in sideway trend, failure swings at resistance may resume bearish environment, otherwise break out above & sustenance may extend rallies 9see weekly charts).

We don’t see any dramatic spikes above 75.687 in near term (i.e. next major resistance).

On medium term perspectives, the breach below strong supports of 74.0776 to resume bearish environment in the major trend, Use rallies for fresh shorts.

Price declines consistently below EMAs and more slumps likely as spinning top and doji appear with huge volumes (observe monthly plotting).

In recent months, it has broken significant supports at 76.848 and 75.922 levels on a closing basis, you can observe the bearish price behavior of this pair upon breach of these levels.

RSI and Stochastic indicate that the selling momentum remains intact despite some minor spikes in between (synthesizing both weekly and monthly analysis).

MACD on weekly, signals extension of the bullish environment but the bearish crossover on monthly terms went below zero levels which means even though short bulls are on the cards bears may resume at anytime.

Most importantly, the massive volumes on declining streak are in conformity to the strong downtrend.

Hence, considering above technical indications we could foresee short terms extension of upswings and more dips as the bears may even drag further in medium terms.

Trading Tips:

Buy one touch binary calls on intraday speculative basis.

Alternatively, stay short in mid-month futures for the targets of 73.597 levels with strict stop loss of 75.687 levels.