Technical Purview:
EUR/JPY is boiling up with lots of bearish candles, such as doji on weekly and candle resembling a shooting star on daily both occurred 135.985.
Currently, RSI (14) trending near 43.4621 levels with downward convergence with dipping prices.
Although the there is no sign of either overbought or oversold situation, it alarms bears trying to take over the rallies as the slow stochastic noises with %D line cross over around 40 levels (current %D line flashes at 35.9771).
Currency Options Recommendation:
However, on a long term hedging perspective, debit put spreads are advocated as the selling indications are piling up on both weekly and daily graphs. Although we foresee short term downtrend on this pair on EOD charts we like to stay in safe zone and recommend buying In-The-Money Puts and to reduce the cost of hedging by financing this long position, selling an Out-Of-The-Money put option.
As the risk appetite varies from different investors to different traders, we've customized our formulation of strategies for such varied circumstances. But on intraday front, we suggest going for long on binary calls at every dips for a target at 135.164, this would provide best speculating opportunity as in swing trade bearish sentiments are intensifying so that one can utilize this as best entry price.
