EURJPY’s minor trend has been turbulent ever since it has broken ascending wedge support (refer daily plotting).
While the major downtrend still remains intact as 21-EMAs and 50% Fibonacci level keeps interim rallies of 4-5 months on the check.
Although some sort of buying sentiments that are momentary but struggling for buying momentum as both leading oscillators still signal selling momentum.
You could observe the upswings from the last couple of months have shown exhaustiveness at 50% Fibonacci levels. Hence, the bullish sentiments or abrupt rallies in the minor trend would only be perceived as new opportunity for fresh short build ups as it is unlikely to reverse the major downtrend.
Hence, on trading perspective, at spot reference: 120.014 levels, contemplating above technical rationale it is advisable to trade tunnel options spreads using upper strikes at 120.304 levels and lower strikes at 119.594 levels.
Alternatively, we advocated shorts in EURJPY futures contracts of mid-month tenors with a view to arresting potential dips, since further price dips are foreseen we would like to uphold the same strategy.
