NZDJPY price dips but still above 5-months highs, Capture dips for leveraged yields in non-directional trend via boundary binaries.
For now, upswings seem to be exhausted, major resistance area is observed between 83.274 to 83.744 levels and likely to test strong support at 82.109 levels.
On a broader perspective consolidation phase in the major trend likely to prolong further upto 83.744 levels on bullish EMA crossover, attempts of bull swings in consolidation phase restrained below stiff resistance of 83.744 & 61.8% Fibonacci retracements.
In the recent history, the attempts of bull swings restrained below these levels with bearish candlestick patterns, such as Gravestone Doji rightly placed at the resistance of 83.762 or near 61.8% Fibonacci retracements to indicate weakness.
While the attempts of bounce backs in consolidation phase from last two months is coupled with bullish momentum and the confirmation from the lagging indicators as well (bullish EMA crossover and bullish crossover on MACD).
RSI converges to the ongoing price rallies as this leading oscillator trending above 63 levels which is a caution for aggressive bears, the same leading oscillator has been adverse when you’ve to plot daily charts, it signals weakness as it reached overbought levels.
Bearish momentum in short term selling sentiments is intensified as stochastic oscillator evidences %D crossover which is again bearish signal (on daily).
Hence, we recommend capturing dips and buy boundary binaries that are likely to add on magnifying effects on trading grounds and add longs in NDFs of mid-month tenors on hedging grounds.
Well, at spot reference: 82.572, contemplating lingering bearish indications, on hedging grounds we maintain southward strikes at 82.109 levels and upward strikes at 83.274 levels.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 28 levels (which is mildly bullish), while hourly JPY spot index was at shy above 64 (bullish) at the time of articulating (at 05:40 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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