The trend has been sliding in the sloping channel, one can easily make out from the price swings as and when it hits channel resistance, the pair has experienced supply sentiments.
NZDJPY bears resume with hanging man pattern at 80.061 levels in the minor trend and gravestone doji and shooting star at 80.985 and 82.811 levels respectively in the major trend.
Puzzling question, for now, is that - Can hanging man plummet more slumps?
The major immediate resistance is seen at 80.150 areas that’s where, in the recent history, the prices have rejected.
Both leading oscillators signal overbought pressures. So far, RSI converged to the rallies but for now, trending below 59 levels which is a caution for aggressive bulls.
The stochastic oscillator noises with overbought pressures by evidencing %D crossover which is the bearish signal.
On a broader perspective, bulls retrace more than 50% Fibonacci level but could not sustain above 83.929, the consolidation phase restrained below this stiff resistance & 61.8% Fibonacci level.
NZDJPY price, volumes, leading indicators moving in tandem with bear swings but lagging indicators are not indicating clear downswings.
Overall, the prevailing bearish sentiments are mounting to signal weaker trend below 80 zones, all these factors would take the major trend in sideways.
Hence, we recommend shorting rallies on speculative grounds and decide to initiate buying tunnel spreads with upper strikes at 80.110 and lower strikes at 79.787 levels to participate in selling sentiment and append leverage to the yields.
Well, alternatively, at spot reference: 79.927 contemplating lingering bearish indications, we recommend shorting mid-month futures contracts in order to arrest bearish risks.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 108 levels (which is highly bearish), while hourly JPY spot index was at shy above 2 (neutral) at the time of articulating (at 06:17 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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