USDJPY -0.14% pops up doji pattern candles at peaks of rallies at 113.545 and 113.548 that are bearish in nature to signal more weakness in the days to come.
Stiff resistance zone is observed at 113.458 to 114.474 areas, we’ve seen the failure swings at this juncture couple of times in the recent past.
Thereby, you could observe that the momentum in the previous bullish swings is totally shrunk away.
Both RSI & stochastic curves are signaling overbought pressures, whereas, the trend indicators (7&21 DMAs and MACD ) suggest the extension of the uptrend. One could trust the indications given by the lagging indicators only upon a decisive breach of above-stated resistance level .
While the major trend shows failure swings exactly at 23.6% Fibonacci levels from the highs of 125.280.
On the flip side, the pair, for now, testing support at 21-EMAs. The major trend has been stuck in between 23.6% and 38.2% Fibonacci levels. In this oscillation, the pair is hovering on EMAs (refer monthly plotting).
The bulls in previous upswings seem to have lost upside traction totally as the momentum has not been supporting to the previous uptrend but signaling indecisiveness.
Trading tips: Contemplating above technical rationale, we advocate buying boundary binary options with upper strikes at 113.548 and lower strikes at 113.115 (i.e. 7DMA), this strategy is likely to add magnifying effects to the yields as long as the underlying spot FX remains between these two strikes on expiration.
Currency Strength Index: FxWirePro's hourly USD spot index has shown -23 (which is bearish ), while hourly JPY spot index was at 105 ( bullish ) while articulating at 09:21 GMT .
Submit Your Comments: