EUR/JPY drifts non-directional despite bullish engulfing , consolidation phase seems edgy at 61.8% Fib.Ret upon shooting star and hanging man occurrence:
Chart and candlestick pattern formed- non-directional, hanging man , and shooting star appear at 133.521 and 132.143 levels on weekly plotting and shooting star at 132.336 levels on monthly plotting. As a result, bulls in the consolidation phase seem to be exhausted at 61.8% Fibonacci levels from the lows of 109.205 levels,
Consequently, bearish patterns such as shooting star & hanging man on this timeframe signal weakness, leading oscillators indicate overbought pressures.
The major supports are observed at 132.9249 and 131.415 levels, we don’t think that the bears will be able to break below these levels in this week’s trading sessions, because the momentum has been favorable on bullish side for the day, however, overbought pressures are popping up.
Momentum oscillators on both timeframes have been indecisive but pop up overbought pressures, whereas the trend indicators are bulls' favor.
Momentum study: In the short run, as both leading oscillators ( RSI & stochastic curves) are slightly indecisive but evidences overbought pressures, the strength and the momentum in prevailing buying interests are quite dubious. While same has been the case in monthly terms.
Trend indicators: MACD on weekly terms has been showing bearish crossover to indicate downswings to prolong further.
Trade tips: On trading perspective, it is advisable to buy one-touch calls as the underlying spot FX likely to drag rallies upto the next stiff resistance levels of 134.475, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps spiking before the binary expiry duration.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 123 levels (which is bullish ), while hourly JPY spot index was at -86 ( bearish ) while articulating at 06:18
Submit Your Comments: