FxWirePro: NZD/JPY Intraday Sentiments Bullish and Wise to Catch Rallies for Shorts on Delivery Basis
Jump 21DMA may drag rallies upto 76.951 but don't have open longs for long term basis.
From yesterday, the pair rallied continuously from 74.141 to 76.449 levels.
It is likely to test the next minor resistance at 76.951 levels. 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 75.922 levels on intraday basis, you can observe how the price behaviour of this pair on either side after breaching this level in the recent historical evidences (see circled areas). So, 75.922 would determine the next short term direction, breakout on either side would be closely watched.
On monthly chart, even though prices have slightly jumped to the current levels at 76.341 levels it has remained well below EMA curves and above mentioned resistance (76.951).
21EMA crosses over 7EMA that signals downtrend continuation.
MACD signals bearish trend to prolong ahead.
Massive volumes on declining streak are in conformity to the strong downtrend.
The leading oscillators have been converging downwards below 44 levels, subsequently, stochastic curves have reached oversold territory but there are proper signs of bullish crossover.
Hence, we could foresee the intraday rallies may drag bullish sentiments upto 76.951 but bears may get active to resume dips at any time, so on delivery trades may target upto the next support only at 75.058 levels and bears may even drag until 74.500 levels again.
Spot ref: 76.352, we wouldn't be surprised even if it hits 76.951 levels shortly on north in intraday terms.