EURJPY major trend consolidates upto 61.8% Fibonacci retracement levels but seems to be restrained at that juncture, while the minor trend drifts below DMAs to stay back in the range bounded trend that persists since 26th September.
Bearish candle with big real body occurred at peaks of uptrend rallies that has evidenced slumps below 7DMA to counter the previous bullish sentiment.
While bulls take support at this range baseline in the several times of the recent history. However, for now, we could foresee with struggling momentum trend may either go in non-directional again or more dips seem to be on cards upon breach below this range baseline.
For today, the momentum is totally in bears’ favor, and with bearish DMA crossover, we see the more southward journey.
On a broader perspective, although the pair seems to be exhausted at 61.8% Fibonacci levels in the consolidation phase, leading oscillators have been converging upwards even in overbought pressures (refer monthly chart).
To substantiate this buying sentiment, MACD also shows bullish crossover that indicates the uptrend to prolong further in medium-to-long run.
Trade tips: Based on above technical rationale, one touch binary put option is advocated on an intraday speculative basis, the leveraged instrument likely to fetch exponential yields than the spot FX as the underlying pair keeps dipping below.
Alternatively, at spot ref: 132.490 we advocate arresting extended bullish risks by initiating longs in futures contracts of mid-month expiries by keeping strict stop loss at around 130 levels.
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing -175 (highly bearish), while hourly JPY spot index was at 125 (highly bullish) while articulating at 07:04 GMT. For more details on the index, please refer below weblink:
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