FxWirePro: After inverse saucer, adjoining handle pattern now on cards for EUR/JPY as interim bulls exhausted at 21-DMA and EMAs

As stated in our recent technical write up on this pair, rallies have extended upto 124 levels or 21-DMA on daily and EMA on monthly plotting. Subsequently, the bear swings seem to be gaining selling interest at this level, that is where attempts of price drops considerable (refer daily chart).

Earlier today’s rallies, it has tested resistance at 122.2700 levels (i.e. 21-DMA) with slight momentum has been substantiated to these bearish interests.

Currently, on daily plotting RSI (14) converging below 55 levels (while articulating) to the declines that signals the strength in downtrend, while stochastic curves are indecisive but bearish momentum likely to prolong. These leading oscillators are indecisive on monthly charts but bearish bias.

As per MACD and moving averages on daily timeframe, swings are indicative to the bear swings to prolong further, indecisive on monthly terms but bearish bias.

Thus, the 6 months of consolidation phase now seems to be deceptive and extension of dips seems most likely as both leading indicators at this juncture indicate shrinking bullish momentum and lagging oscillators have been indecisive but slightly bears favour.

On intraday plotting, the intensified bear swings manage to break below strong support at 121.6652, we could foresee more dips in the days to come.

For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 122.1590 and lower strikes at 121.6000.

This strategy is likely to fetch leveraged yields than spot FX as long as underlying spot remains between the two strikes.