FxWirePro: CAD/JPY hammer pattern spikes off rallies above DMAs, upswings edgy at stiff resistance on flurry of bearish streaks – Trade boundary strikes

Dragonfly doji occurs at 83.533 levels that spikes off rallies above DMAs but on the contrary, the flurry of bearish patterns have occurred at the stiff resistance of 84.988 – 85.135 levels, the upswings are in line with both leading & lagging oscillators (refer 4H chart).

Momentum oscillators are showing upward convergence but RSI pops up faded strength at 60 levels and stochastic curves indicate overbought pressures in the minor trend.

While the major trend has been stuck in the range-bounded trend, shooting star pattern has occurred at 88.649 and 83.970 levels that hamper previous the bullish momentum, but hammer pattern candlestick has occurred at 82.362 level to counter back with rallies hovering at 7EMAs (refer monthly chart).

Trade tips: Well, on trading perspective, at spot reference: 84.474 levels, it is advisable to buy boundary binaries using upper strikes at 84.8030 and lower strikes at 84.120 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration.

Alternatively, on hedging grounds, we advocate shorting futures contracts of mid-month tenors as the underlying spot FX likely to target southwards 0.68 levels in the medium run.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly CAD spot index is inching towards -61levels (which is bearish), while hourly JPY spot index was at -79 (bearish) while articulating (at 12:55 GMT). For more details on the index, please refer below weblink:

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

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