FxWirePro: NZD/JPY bull streaks halt but still above 7-weeks’ highs, major trend retraces beyond 50% Fibos – Tunnel spreads to speculate and long hedge

From last two weeks, NZDJPY bullish streaks seem to have been halted today, but the current price is still above 7-weeks' highs.

Historically, upswings exhausted at the stiff resistance of 83.929-943 levels, Shooting star pattern candle has occurred at 83.100 levels that has evidenced slumps (refer weekly chart).

On this timeframe, the ongoing price rallies, volumes, leading and lagging indicators are moving in tandem with buying sentiments.

Most importantly, please be noted that although medium term bullish sentiments are intensified, bears have resumed for the day. Intraday traders should keep this in mind.

RSI converges to the ongoing price rallies (on weekly chart) as this leading oscillator trending above 60 levels which is the confirmation for aggressive bulls.

Same has been the case with stochastic curve, the bullish momentum in buying sentiments are intensified as stochastic oscillator evidences %k crossover which is again bullish signal.

On a broader perspective, the bulls have managed to retrace more than 50% Fibonacci retracements. For now, the uptrend likely to prolong.

Both leading & lagging indicators to substantiate bullish stance, MACD remaining in bearish trajectory does not substantiate this standpoint but this would be deemed as indecisiveness in current rallies.

On the contrary, historically, the attempts of bull swings in consolidation phase restrained below stiff resistance of 83.939 & 61.8% Fibonacci retracements.

Well, at spot reference: 82.374, we recommend shorting rallies on speculative grounds using tunnel spreads, upper strikes at 82.756, lower strikes at 81.871 levels.

Alternatively, with a view to arresting upside risks, we advocate initiating longs in futures contracts with mid-month tenors.

Currency Strength Index: FxWirePro's hourly NZD spot index is flashing at 57 levels (bullish), while hourly JPY spot index was at shy above -45 (bearish) while articulating at 06:17 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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