During this month’s rallies of AUDJPY bears have managed to pull back from the highs of 76.842 (strong resistance at 76.842 on the ).
After last month’s highly volatile followed by this month’s is most likely.
Most significantly, you can probably figure out from the monthly chart that the attempts of recovery has been showing weakness at 76.842 again on monthly charts to drop below curves as the strong supply seen at this level for this pair.
The current prices are held firmly at supports of 7&21DMA levels on , so thereby bears resume their business seeing more weakness to signify long term trend's momentum.
So, stay short break below DMAs and more slumps likely upon breach below 74.143 as it seems on the verge of 21DMA crossing over 7DMA which sell signal.
In addition, to substantiate the above stance the leading oscillators on both daily and monthly charts, have been showing consistent convergence to the prevailing price slumps; we believe this as bears are getting more impetus again.
is currently trending below at around 51 levels that has added the impetus in momentum in downswings.
Well, curves, on the other hand, boiling up selling up at around 40 levels which is again a confirmation to the indication.
Thus, any breach of 74.143 would be a clear confirmation to the direction of the further downtrend, bias is certainly southwards.
1w NZDJPY ATM IVs are spiking at 24.50%, risk averse bears should wait for the breach of above-mentioned support levels to initiate fresh shorts, alternatively, the trade strategy for aggressive speculators would be the cash-or-nothing binary options using boundary binaries on an intraday speculation basis.
Upper strikes at 74.734; lower strikes at 73.962.
The trading between these strikes would derive certain yields in this puzzling trend and more importantly these yields are exponential from spot FX.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 74.734 > Fwd price > 73.962).