FxWirePro: NZD/JPY swings stuck in range, resembles whipsaws – Stay short via mid-month futures to hedge bear storm on Gravestone Doji formation

Well, after looking at the title of this write up one may have come up here with heavy bearish mind-set, but in reality, it isn’t that threatening for the bulls of this pair than it really seems.

Price swings stuck in range, any attempts of upswings restrained below 21DMA, break below support of 80.650 likely to drag more declines, else bulls may resume.

Gravestone Doji rightly placed at resistance at 83.762, can bears continue the major downtrend.

The breach above 81.864 would take the bull trend to hit next strong resistance at 83.762 levels (refer monthly plotting), on the contrary, the upswings have gone above EMAs & lingering at 11-1/2 month’s highs.

NZDJPY price, volumes, leading and lagging indicators moving in tandem with bull swings.

While both leading & lagging indicator to substantiate this bullish stance.

RSI converges to the ongoing upswings as this leading oscillator trending near 70 levels which is overbought zone but this isn’t the same case when you’ve to plot daily charts. It signals weakness thereby.

You could very well observe from last 2 weeks, the appearances of bullish attempts despite the gravestone doji candlestick pattern which is extremely bearish in nature contemplating daily price behaviors.

Buying momentum in short term rallies are not convincing by stochastic oscillator as well in consolidation phase. MACD here signals bearish trend to prolong ahead.

Hence, we recommend shorting rallies on hedging grounds, and decide to initiate shorts in futures contracts with near month tenor.