USD/JPY pops up shooting star to repeat the history at stiff resistance, major trend tests support after retracing 38.2% Fibos – Boundary binaries to trade:
Shooting star pattern has occurred at 113.635 levels last week, that’s where we’ve seen a stiff resistance in the past.
However, earlier in this week, the upswings have shrugged off this shooting star occurrence, but for now, the bulls losing traction as the momentum has been shrinking away as the price curve nearing this stiff resistance. But the current prices are still above 21DMAs, expect more slumps upon breach below 7DMAs.
For short-term traders, next stiff resistance is observed at 114.474 levels.
On a broader perspective, the current prices spike above EMAs again after testing support at 38.2% Fibonacci retracement from the peaks of 125.856, unwise to expect sharp rallies until it breaks 23.6% fibos.
Momentum analysis: Stochastic curves have been indecisive that indicates no momentum for the upswings seen on daily terms but slightly bullish bias on monthly terms and RSI evidences bearish divergence on dailies that indicates strength in the previous uptrend is faded away at the above-stated resistance levels and the prices likely to correct again.
Trend analysis: Lagging indicators ( MACD , 7 & 21 EMAs) have also been indicating indecisiveness while prices attempt to bounce. The current prices are still below EMAs despite ongoing rallies, the bullish sentiments for this month are not backed by momentum & trend indicators.
Trading tips: Contemplating above technical rationale, we advocate buying boundary binaries with upper strikes at 114.217 and lower strikes at 113.803 to participate in both short-term bearish trend and the previous uptrend, this strategy is likely to add magnifying effects to the yields as long as the underlying spot FX remains below these strikes on expiration.
Currency Strength Index: FxWirePro's hourly USD spot index has shown -99 (which is bearish ), while hourly JPY spot index was at -98 ( bearish ) while articulating at
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