FxWirePro: EUR/JPY major trend in consolidation phase boost up after breach above handle, intraday rallies likely to intensify on bullish DMA crossover

Although EURJPY bulls restrained below a stiff resistance at 125.7962, more rallies on the cards as bearish DMA crossover and intensified bullish momentum from leading oscillators signal buying interests.

The major trend has again resumed bullish swings in this consolidation phase after breaching handle pattern (refer monthly charts), while this consolidation phase has been observed from last two and a half months or so. This is forming handle pattern adjoining to the inverse saucer.

After last week’s whipsaws pattern, bulls have gone above DMAs again (daily chart).

While in short term trend, both leading oscillators signal buying interests, RSI has been converging upwards above 60 levels, stochastic curves have been little indecisive in overbought territory and signals intensified buying momentum, the same has been the signal on the monthly term without any indecisiveness.

To substantiate this, 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 on monthly terms and in bullish trajectory on daily terms with bullish crossover on both timeframes.

Trading tips:

Contemplating above technical reasoning, for intraday trading perspective, it is advisable to buy one touch binary calls on dips for targets upto 125.7962. The speculators are likely to add magnifying effects to their yields as long as spot FX keeps spiking higher on expiration.

Currency Strength Index: FxWirePro's hourly EUR spot index has turned into -12 (which is neutral), while hourly JPY spot index was at shy above -55 (mildly bearish) at 5:50 GMT. For more details on the index, please refer below weblink:

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