AUDJPY major trend has gone into the consolidation phase from the lows of 72.437 since June 2016. Retraced almost more than 50% Fibonacci level.
Bears now repeat the history near 61.8% Fibos, the bull-swings seem to be exhausted at this juncture. As a result, shooting star pattern has occurred at 88.097 levels which is bearish in nature. Ever since then bears have managed to trim gains considerably.
But now on daily terms, the bullish engulfing pattern has occurred at 86.068 levels to counter the slumps evidenced by shooting star.
These bullish rallies are backed by both leading oscillators.
Momentum in the uptrend on daily term seems to be intensified as both RSI and stochastic curves are converging to the price spikes.
The extension of these rallies only on breach and sustenance above stiff resistance of 85.670 levels as bullish MACD crossover to substantiate the uptrend continuation.
Trade Tips:
Well, contemplating above stated technical reasoning, on speculative grounds we advise buying one touch binary call options.
The strategy is likely to derive exponential yields than the spot movements.
Alternatively, shorting mid-month futures contract are also advocated with a view to arrest downside risks.
Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards 73 levels (bullish), while hourly JPY spot index was at -20 (neutral) while articulating at 08:06 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
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