NZDJPY traders on minor trend are extending slumps after shooting star formation which is bearish in nature, while the minor trend slides through sloping channel, both leading and lagging indicators have been indecisive (refer 4H chart).
The current rallies are restrained and the price slides below DMAs as bulls reject at the stiff resistance.
Bears hamper previous bullish sentiments even in the intermediate trend as the current prices slide below EMAs again, both leading oscillators signal bearish momentum (refer weekly chart).
For now, the downswings likely to prolong on mostly likely bearish EMA crossover and intensified bearish momentum.
Both leading and lagging indicator to substantiate bearish sentiments on this timeframe.
RSI & stochastic curves show downward convergence that indicates the strength and momentum in selling interests.
Contemplating the lingering bearish sentiments in the minor trend, at spot reference: 77.006 levels, on trading grounds we recommend buying tunnel spreads using upper strikes at 77.100 and lower strikes at 76.735 levels.
On hedging grounds, long-term investors should stay short in futures contracts of mid-month tenors.
The writers of futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 23 levels (which is mildly bullish), while hourly JPY spot index was at 55 (bullish) while articulating (at 09:30 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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