The flurry of bearish streaks are occurring on AUDJPY swings, Back-to-back shooting stars occurred at the stiff resistance of 87.538 and 86.320 levels (see weekly charts).
AUDJPY bears resume unerringly at 50% Fibonacci retracement & 21-EMA with shooting star (refer monthly plotting).
In 8-9 months of consolidation pattern has spiked from the lows of 72.437 levels (Jun’16 lows), for now, bulls seem to be exhausted at 50% of Fibonacci retracements.
As you could probably make out the upswings on monthly plotting have exactly rejected at around 87.605 levels (i.e. 50% Fibonacci retracement levels).
As a result, a shooting star is occurred at 84.249 levels at this Fib. level and attempting slide below 21EMA, that is where the leading oscillators (RSI) is also sensing some sort of resistance at 65 levels, you observe the leading indicator gaining or struggling for strength in trend at this juncture (refer monthly plotting).
Same has been the case with stochastic curves that evidence the %D crossover right from the overbought zone (refer weekly plotting).
MACD also substantiates the similar bearish impact in the weeks to come.
Trade tips: – Tunnel spread is the best choice of speculation in going price declines.
Well, contemplating above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads favoring bearish indications.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 84.9554 and lower strikes at 84.400 levels.
