FxWirePro: NZD/JPY surges above 7DMA, oscillates within rising channel, more gains on cards – Binary calls to speculate

Jump above 21DMA is likely to drag rallies up to 75.296 but it is not advisable to accumulate longs on long term basis (See monthly charts, “never buck the major trend”).

The pair has been surging in rising channel when it tested support at 73.037 levels, observing the current price sentiments it is likely to extend gains up to 75.296 or even up to the channel resistance ahead of RBNZ OCR decision which is likely to remain unchanged.

From last 3 days, the pair has been rallied continuously from 73.863 to the current 74.938 levels.

It is most likely to test the next minor resistance at 75.296 levels as leading oscillators converge positively to the ongoing price rallies. 

On the contrary, bears may resume at any time to push back southwards at that level as the major trend is downtrend (refer monthly charts), so be cautious while deploying investment strategies involving this FX exposure.

It has recently broken supports at 74.143 levels (see monthly charts), you can observe the leading oscillators have been adverse to the daily signals, converging downwards below 42 levels, subsequently, stochastic curves have reached oversold territory but there are no signs of bullish crossover.

Moreover, 21EMA crosses over 7EMA that signals downtrend continuation.

MACD signals the bearish trend to prolong ahead.

Massive volumes on declining streak are in conformity to the strong downtrend.

Although we could foresee the intraday rallies may drag bullish sentiments up to channel resistance but bears may get active to resume dips at any time, so on delivery trades may retest up to the immediate major support only at 74.143 levels.

At spot ref: 74.938, we wouldn't be surprised even if it hits 75.296 levels shortly on the north, hence using one touch binary calls on intraday terms is likely to fetch handsome yields for the day.