FxWirePro: AUD/JPY bearish engulfing and doji patterns hamper uptrend momentum, major trend seems edgy near 61.8% Fibos but seems intact – Construct Tunnel spreads to trade

Bearish engulfing & Doji have occurred at 89.163 and 89.165 levels respectively.

These bearish pattern candles hamper previous rallies in short term trend and evidence price slumps (refer daily chart), selling sentiments backed by leading & lagging oscillators on this timeframe.

Retraced more than 50% Fibonacci levels but for now, seems the uptrend seems to be struggling for momentum as you can observe both RSI and stochastic curves are indicating overbought pressures.

The extension of consolidation phase only on breach and sustenance above 89.491 levels as bullish EMA crossover to substantiate the bullish stance, where upswings are backed by both lagging indicators (moving average & MACD on monthly terms).

Further uptrend in this consolidation likely to extend further bullish EMA crossover.

Most importantly, MACD has no deviation from the buying trend sentiment, indicates the uptrend is likely to extend further on both timeframes.

Trade Tips:

Well, contemplating above stated technical reasoning, on speculative grounds we advise bidding tunnel spreads with upper strikes 88.680 and lower strikes at 88.015.

This strategy is likely to fetch leveraged yields than spot FX and certain yields as long as the underlying spot FX keeps dipping southwards.

Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -119 levels (highly bearish), while hourly JPY spot index was at shy above 2 (neutral) at the time of articulating. For more details on the index, please refer below weblink:

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

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