The minor trend of NZDJPY was sliding through the sloping channel so far, but for now, the continuous rallies from last one month or so, it tested channel support at 76.090 levels. Ever since then, the current price has gone well above DMAs.
The upswings have managed to break-out the channel resistance, while both leading & lagging oscillators show upward convergence.
Today’s upswings of this pair have headed towards next stiff resistance at 79.490 levels, that’s where we’ve seen the failure swings and the occurrence of shooting star have signaled the weakness in the recent past.
On a broader perspective, the current prices spike above EMAs as well after testing strong support at the neckline of the double top (on monthly plotting), both leading oscillators substantiate bullish sentiments on this timeframe.
Both RSI and stochastic curves converge upwards along with the prices spikes, this signals the strength and intensified momentum in the buying pressures, so is the case on the daily plotting.
Overall, the prevailing bullish sentiments are mounting to signal mightier trend above 79.490 zones, and the consolidation mode in the major trend has again resumed.
Hence, we advocate staying long via one touch binary call options for a target of 40-50 pips. The rationale for this trade is that when the anticipated trade turns out to be true and if the spot FX earns 1x yields, this binary option likely to fetch magnified impact on yields. Let’s say 5x yields.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 44 levels (which is bullish), while hourly JPY spot index was at shy above 65 (bullish) while articulating (at 10:00 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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