NZDJPY bulls spike well above SMAs with healthy bullish momentum, uptrend likely to prolong only upon break-out & sustenance above stiff resistance of 77.714 levels.
Ever since the pair formed dragonfly doji at 76.241 levels on the 4H chart the price has been rising constantly.
But for now, the minor trend seems to be edgy despite today's rallies as it tests the stiff resistance of 77.714, the current price remains well above SMAs.
While both leading and lagging indicators are substantiating bullish sentiments (refer 4H chart).
While on intermediate trend, bulls have managed to test the strong support at 75.965 levels to bounce back towards EMAs (refer weekly chart). Thereby, if the uptrend prolongs, then it is most likely to form a triple bottom pattern.
But technical indicators on this timeframe are not confirming ongoing price rallies, while on the flips side, on intraday plotting, there has been gaining strength signaled by both leading and lagging oscillators. Thus, this indecisive is deemed as the wedged trend is stuck between pivot points of 77.714 on north and 75.965 on the south.
Trade tips: At spot reference: 77.680 levels, amid this edgy trend, on trading perspective, we recommend shorting rallies by buying boundary binaries using upper strikes at 77.784 and lower strikes at 77.494 levels.
The trading between these strikes likely to derive certain yields in this perplexed trend in the short term and the intermediate trend, more importantly, these yields are exponential from spot movements.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 77.714 > Fwd price > 75.965).
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 46 levels (which is bullish), while hourly JPY spot index was at -52 (bearish) while articulating (at 11:53 GMT). For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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