FxWirePro: EUR/JPY bulls restrained below 7-DMA, more slumps on card as bearish DMA crossover likely to extend handle pattern adjoining inverse saucer

The major trend has again turned out to be bearish after a brief consolidation phase, while consolidation phase has been observed from last one year or so. This is forming handle pattern adjoining to the inverse saucer.

Last three-four days in the recent past, bull swings in consolidation phase seem to be exhausted at the stiff resistance of 7DMAs (daily chart).

While in short term trend, both leading oscillators signal selling interests, RSI has been converging downwards at 51 levels, stochastic curves have been little indecisive but signal intensified selling momentum but this has been adverse on the monthly term.

On the contrary, rallies may inch towards the same resistance but more clarity of consolidation phase only above 123.9873 levels (handle pattern, refer monthly charts).

In the major trend, after inverse saucer pattern, now bears attempt to form handle pattern adjoining saucer, interim bulls exhaust at the stiff resistance of 124.4721 (refer monthly charts).

RSI (14) likely to lose buying strength below 59 levels, historically you could very well observe the leading oscillator converge to the price declines that signal the losing strength in the uptrend.

Please be noted that despite stern rallies in the recent past (from last 11 months of consolidation phase), the current MACD curves are still in bearish trajectory. But on daily terms, this lagging oscillator indicates prolonged price dips.

Trading tips:

Contemplating above technical reasoning, for intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 123.7357 (7DMA) and lower strikes at 123.1720. The speculators are likely to add magnifying effects to their yields as long as spot FX remains within these strikes on expiration.