NZDJPY has constantly been tumbling ever since the formation of back-to-back shooting stars at 77.311 and 77.482 levels in the minor trend, the pattern has occurred at 74.681 levels to bounce back (refer ), while gravestone occurs at 76.752 levels on weekly terms which is in nature that nudges prices below 7EMA levels. Both leading and lagging indicators have also been signalling overbought pressures (on both timeframes).
While the major downtrend likely to prolong on DMA, and crossovers (refer daily and weekly chart).
Most noticeably, the intermediate trend slides through a pattern which is again in nature. Now, bears have managed to breach below supports.
As a result, after brief rallies since the final week of May, the current price remains still below 7EMAs as both leading and lagging indicators bias.
Both and curves have been constantly showing the downward convergence that indicates the strength and momentum in the interests.
Contemplating the lingering sentiments on both the timeframes, at spot reference: 75.024 levels, on trading grounds we recommend buying tunnel spreads using upper strikes at 75.269 and lower strikes at 74.670 levels.
On hedging grounds, long-term investors should stay short in contracts of mid-month tenors.
The writers of the contract are expected to maintain margins in order to open and maintain a short position.
Currency Strength Index: FxWirePro's hourly NZD spot index is inching towards 45 levels (which is ), while hourly JPY spot index was at -40 ( ) while articulating (at 11:10 GMT ).