USD/JPY gap up opening gains bullish momentum, major trend goes non-directional – One touch binary call to speculate and 1m DNT:
Chart and candlestick pattern formed- Non-directional (monthly plotting) and gap up opening candle pattern (4H chart). The major trend has been stuck in long-lasting range that has prolonged from last 9-10 months.
Major support is seen at 111.896 and 111.062 levels.
Major resistances are seen at 113.331 and 114.733 levels.
The pair has historically shown a fake jump upto these resistance levels and once again declined sharply from that level.
Both leading oscillators ( RSI & Stochastic curves) converge upwards constantly to the price upswings (refer 4H charts).
The pair tumbled last Friday after FOMC member Kaplan’s remarks on the guidance of Fed’s funds rates, US manufacturing PMIs, and Japanese upbeat capital spending.
Any convincing sustenance above 112.712 would likely drag the pair upto next resistance level of 113.331.
The lagging indicators (both 7&21DMA and MACD ) signals the continuation of the minor bullishness.
On a broader perspective, the major trend has been stuck in the range as shown on the monthly plotting (refer rectangular area on this timeframe). The price behavior has been hanging on EMAs, while both leading oscillators have been indecisive and so is the trend indicators.
Hence, contemplating above technical rationale, it is wise to buy one touch binary call option to participate in the prevailing bullish sentiments. The strategy is likely to fetch leveraged yields than spot yields as long as underlying spot FX keeps spiking before the binary expiry duration.
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