That's where it has struggled to hold onto the resistance at 76.690 levels (upper BB, 30th March close).
After dropping from this resistance, bears have managed to push back southwards for support at 75.922 which we've advised in our earlier posts.
It has now broken supports at 75.922 levels on a closing basis (yesterday's close at 75.026), you can observe the price behaviour of this pair upon breach of these levels, it has cleared one more major support within a day at 75.052 levels.
and indicate that the selling momentum remains intact despite some minor spikes in between.
on daily, signals new environment is likely to establish as there is an attempt of crossover is observed.
On monthly chart, even though prices have slightly jumped in last month but it has remained well below 7 & 21EMAs.
signals to prolong ahead.
Massive volumes on declining streak is conformity to the strong downtrend.
has been converging downwards below 42 levels, subsequently, curves have reached oversold territory but there is signs of crossover.
Hence, considering above technical indications we could foresee more dips upto the next support only at 75.058 levels and bears may even drag upto 74.500 levels again in the days to come.
Trade tips: Bear put spread
Spot ref: 75.177, NZDJPY 1W IVs are at around 15.62% (while articulating).
We wouldn't be surprised if it shows interim spikes, bears likely to drag again towards 74.500 levels sooner or later, hence in order to tackle this swings we reckon debit put spreads are best suitable as the IVs and premiums are reasonable considering daily swings on technical charts.
So, here goes the strategy, Debit Put Spread = Go long 1M ATM -0.49 delta Put + Short 1W (1%) OTM Put with lower Strike Price with net delta should be at -0.40.
For a net debit bear put spread reduces the cost of trade by the premium collected (on the shorts of OTM put) and keeps option trader to participate in downward moves and any upswings in abrupt.