EUR/JPY bulls bounce back after shooting star to retrace more than 61.8% Fibos in consolidation phase – Boundary binaries for leveraged trading:
Chart and candlestick pattern formed- As stated earlier in our post, RSI's bearish divergence evidence slumps as shooting star hampered rallies, bulls countered, upswings spike above DMA, testing support at 7DMA on daily terms, and consolidation phase breaches 61.8% Fibonacci retracements, bulls shrug off shooting stars appearances at the stiff resistance one on monthly plotting.
The major supports are observed at 134.8094, 134.7672 and 134.475 levels, we don’t think that the bears will be able to break below these levels in this week’s trading sessions because both the trend and momentum indicators have still been favorable to the bullish side.
Momentum study: Momentum oscillators on both timeframes have been converging upwards, and this upward convergence signals strength and intensified momentum even in the overbought territory.
In short run, as both leading oscillators ( RSI signaled bearish divergence & stochastic curves show %k crossover) are now decisively indicating for further buying sentiments. While same has been the case in monthly terms.
Trend indicators: The lagging indicators are also in bulls' favor. MACD on monthly terms has been showing bullish crossover to indicate upswings to prolong further. This has been substantiated by bullish EMA crossover.
Trade tips: Well, on trading perspective, it is advisable to buy boundary binaries using upper strikes at 136.401 and lower strikes at 135.497 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains between these two strikes before the binary expiry duration.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 138 levels (which is bullish ), while hourly JPY spot index was at -18 (mildly bearish ) while articulating at 05:35 GMT
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