FxWirePro: EUR/JPY major trend retraces more than 50% Fibos, intermediate trend tests channel support – Double touch binaries to trade

Chart pattern formed- rising channel.

Bulls bounce back after testing channel support, current prices hovering at DMAs, more rallies on cards if bulls break-out above stiff resistance.

Please be noted that the back to back dragonfly doji patterns have occurred exactly at this juncture and they have shown their bullish effects so far.

The major supports are observed at 132.7114 and 131.415 levels, and the bulls are now attempting to break out above the major resistance at 133.285, for now, the rallies upto 133.582 seems to be most likely.

On a broader perspective, the bull swings in the consolidation phase have gone above 50% Fibonacci levels, the momentum oscillators have been indecisive and the trend indicators are in bulls' favor.

Momentum study: In the short run, as both leading oscillators (RSI & stochastic curves) are converging to the ongoing price rallies, the strength and the momentum in this buying sentiments are confirmed. While these indicators are signaling overbought pressures on monthly terms.

Trend indicators: MACD on daily terms has been indecisive, however the same has been displaying bullish crossover to signal uptrend continuation.

 Trade tips: With the double one-touch binary options trade, we advocate choosing upper strikes 133.285 and lower strikes 132.919 levels in which the options trader reckons that the price of the underlying spot FX would hit before the option expiration time. 

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 174 levels (which is extremely bullish), while hourly JPY spot index was at shy above -78 (bearish) while articulating at 08:50 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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