FxWirePro: EUR/JPY Whipsaws on Strong Support at 123.082 But Prices Still Remain Below DMA's - No Traces of buying Yet
Prices whipsaws on support 123.082 that falls below DMA, Oscillators signals no buying but bearish biased, downtrend moving in sloping channel so far.
Although bulls hold stronger at around 123.082, that is where EUR/JPY is boiling up with lots of bearish indications popping up including candles, such as gravestone doji at 123.123 levels and leading oscillators converge these price declines on daily chart.
Currently, RSI (14) trending below 36 levels with downward convergence with dipping prices.
Then there is no sign of bullish crossover, it alarms bears trying to take over the declining rallies as the slow stochastic noises in the oversold trajectory with %D line cross over daily charts (current %D line flashes at 14.3318 while articulating).
DMAs and MACD still signal bearish trend continuation. Same is the case with technicals on longer time frames.
On monthly plotting, the prices pushing below 7EMA, downtrend moving sloping channel so far.
It’s advisable to use a combination of patterns and indicators to determine your trading strategy.
As a result of these bearish patterns, more downside potential is foreseen to retest of 122.055 levels.
On an intraday trade perspectives, deploy boundary binary options for certain yields as stated above the swings moving in narrow range (whipsaws) the two different strikes would likely derive higher probabilities of positive cashflows.
Use ITM put strike at 123.549 and OTM put strikes at 122.749 levels.
The material has been provided by InstaForex Company - www.instaforex.com