FxWirePro: NZD/JPY stiff resistance upbeat bullish engulfing, bears shrug off as major trend goes non-directional – Bid boundary binaries to speculate

The upswings of this pair are restrained below stiff resistance at 79.491 levels, that’s where 79.351 and 79.003 levels in the past.

Yesterday bullish engulfing pattern occur at 79.287 levels but bears have disregarded this bullish pattern as the above stated stiff resistance has acted as the strong price supply zone.

The previous month bears resume with the bearish engulfing pattern that takes the current prices below EMAs but this month’s price action has bounced back to hover at the same EMA levels.

The minor trend has been sliding in the sloping channel, while both leading oscillators converge upwards when prices are spiking within this channel but signal overbought pressures when this channel resistance is rejected. In the short term trend, the bulls test support at channel baseline but the rallies are not convincing.

For now, can bears plummet more slumps upon breach below 7DMA is what should be closely watched?

The major resistance 1 and resistance 2 are seen at 79.491 and 83.780 levels respectively that’s where, historically, the trade sentiments have seen supply zone.

While in the short term trend, the attempts of bull swings restrained below 7&21-DMAs and sloping channel resistance.

RSI converges to the ongoing price dips as this leading oscillator trending below 48 levels on dailies and 49 levels on monthly terms which is a caution for aggressive bulls.

Although stochastic oscillator has been indecisive, the bearish momentum in the selling sentiments is intensified.

Overall, the prevailing bearish sentiments are mounting to signal weaker trend below 78-78.50 zone, and the major downtrend has now been in non-directional phase.

Hence, we recommend shorting rallies on speculative grounds and decide to buy boundary binaries using upper strikes at 79.491 and lower strikes at 78.754 levels.

This strategy is likely to fetch leveraged yields than spot FX and certain yields as long as underlying spot FX remains between these strikes.

Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 52 levels (which is bullish), while hourly JPY spot index was at shy above 76 (bullish) while articulating (at 07:07 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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