EURJPY forms consecutive spinning tops to exhaust rallies
EURJPY interim bulls halt at stiff resistance with consecutive spinning tops, stay shoty as hourlies signal bears resumption with shooting star: As stated in our recent technical write up on this pair, rallies have extended up to 124 levels. but for now, the bull swings appear to be exhausted at the resistance of 124.105 levels, that’s where back-to-back spinning tops ar occurred to evidence dips that is gone below 7DMAs (refer daily chart). Before today’s rallies, it’s tested support at 121.526 levels but no momentum has been substantiated to these rallies.
Thus, the rallies appear to be deceptive and extension of dips looks most likely as each leading indicators at this juncture indicate shrinking bullish momentum and lagging oscillators have been indecisive but slightly bears favor. Currently, on weekly plotting RSI (14) converging below 69 levels (while articulating) to the declines that signals the strength in downtrend, while stochastic curves ar indecisive at overbought zones but bearish momentum likely to prolong. MACD and moving averages on this timeframe ar indicative to the bear swings to prolong.
On intraday plotting, the bear swings intensified after the price slid below SMAs with bearish crossover (see 4H chart), shooting star on 1H sends an early signal of bearish pressures. but the trend for the day may either spike or go in sideways; we see speculative opportunities in boundary binary choices. For intraday trading perspective, it’s advisable to buy boundary binaries on dips upper strikes at 122.526 and lower strikes at 121.860. This strategy is probably going to fetch leveraged yields than spot FX as long as underlying spot remains between the 2 strikes.