#Pyth, 32 bytes
J1VQ=JhtS[06+J-qNbqNd;?qJ1\N?JJ1
Uses space and newline for down and up.
Explanation
J1VQ=JhtS[06+J-qNbqNd;?qJ1\N?JJ1
J1 Initialize J to 1
VQ ; For each character in the input
+J-qNbqNd Increment or decrement J
htS[06 Get the middle sorted value of [0,6,J]
=J Assign it to J
?qJ1\N?JJ1 Change 1 to 'N' and 0 to 1
There's almost certainly a better way to do the incrementing and the output.