EURJPY -0.34% trend has been oscillating between the tight range of upside bracket at 136.168 and downside bracket at 135.171 levels (refer 4H chart).
At every range resistance, shooting star pattern candles have occurred. Prior to which the pair has witnessed sharp rallies. But as and when these bearish patterns have occurred the trend has been wedged in this range.
RSI shows faded strength 63 levels on this timeframe, signals bearish strength as shooting star hampered rallies.
For now, bulls struggle to break-out range resistance, the stern bullish candle has taken off the rallies well above DMAs but above-mentioned shooting stars counter-rallies.
While both leading indicators signal overbought pressures while lagging indicators have been indecisive.
The consolidation phase in the major trend manages to break out 61.8% Fibonacci retracements, thereby, bulls shrug off previous shooting star appearance at the stiff resistance on monthly plotting.
The major supports are observed at 135.7527, 135.198 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 absolutely indecisive.
Momentum study in major trend: Momentum oscillators on monthly timeframes have been converging upwards, and this upward convergence signals strength and intensified momentum even in the overbought territory.
RSI signaled bullish convergence & stochastic curves have been indecisive in OB zone that is now decisively indicating for further buying sentiments.
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, contemplating above technical reasoning, on trading perspective, it is advisable to buy boundary binaries using upper strikes at 136.175 and lower strikes at 135.622 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 58 levels (which is bullish ), while hourly JPY spot index was at -40 ( bearish ) while articulating at 06:31 GMT .
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