EUR/JPY bulls shrug-off bearish patterns, on verge of extending upswings to retrace 61.8% Fibos – Trade boundary binaries and short hedge:
Chart and candlestick pattern formed – Shooting star and spinning top pattern candles have occurred at stiff resistance levels of 133.087. Bulls shrugging off these bearish patterns, earlier bullish engulfing candles stimulates rallies with the healthy momentum (refer daily chart ).
Bulls in the major trend cushioned at 21-EMAs and bouncing back, hanging man followed by bearish engulfing patterns hamper sustenance above 61.8% Fibonacci retracements (monthly plotting).
Both leading indicators on this timeframe signal overbought pressures, the consolidation phase heading again towards 61.8% Fibonacci retracements
The stiff resistance levels are observed at 133.087 and 134.475, Break-out above these stiff resistances likely to drag rallies on bullish DMA & MACD crossovers.
The major supports are observed at 132.424, 131.4310 and 129.828 levels, the break below these levels would resume the bearish swings.
Momentum oscillators on daily terms have been showing upward convergence that indicates strength and intensified momentum in the upswings, while both the trend indicators are in bulls' favor.
Trend indicators: MACD on monthly terms has been showing bullish crossover but tilted the curve in the bearish territory to indicate uncertainty of the major trend.
Trade tips: On trading perspective, at spot reference: 132.824 levels, it is advisable to buy boundary binaries using upper strikes at 133.087 and lower strikes at 132.424 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.
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