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FxWirePro: EUR/JPY may extend slumps – short on rallies via binary puts

EUR/JPY is nearing a decisive resistance levels at 133.096 where it has rejected and bounced several times, the pair has shown the supply and demand sentiments quite a lot of times in the recent times as well (see circled areas).

Moreover, it is now boiling up with bearish candle, we traced out a bearish shooting star at 132.709 levels on intraday chart. So, traders must wait and see the next price movement. In an uptrend, if a bullish candle forms after the shooting star pattern at a resistance level, it could be used as an exit point.

Stochastic approached overbought zone and there is an attempt of %D line crossover that signifies selling pressures.

Considering previous downtrend, bearish candle forms followed by this Spinning Top at 132.700 resistance level, hence it could be used as an exit point.

Gravestone Doji and candle resembling a shooting star on monthly occurred at 135.870 and 132.700 respectively.

Trade tips: The best suitable idea is to use the rallies to stay short in this pair via binary puts as they are meant for high leveraging products. When our research convictions are strong enough towards downside why maximizing profits exponentially than being stuck in spot FX. So, buy binary delta puts on every rally for targets at 132.554 with strict stop loss at 133 levels, thereby risk reward ratio at 1:3.

Our earlier targets reached, please refer for more readings:

http://www.econotimes.com/FxWirePro-Spinning-top-Doji-patterns-signal-EUR-JPY-weakness-more-downside-potential-upto-132-regions-111612

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