FxWirePro: EUR/JPY minor trend drifts in sideways amid tug of war between hammer and shooting star, major trend still stuck in range

Please be noted that EURJPY has witnessed the sizeable price slumps and rallies upon below mentioned candlesticks patterns. 

Technical chart and candlestick patterns formed – Hammer patterns have occurred at 127.574 and 128.694 levels, on the flip side, the stern shooting star patterns have occurred at 129.690, 129.607 and 132.336 levels (on both daily and monthly terms). While the stiff resistance is observed at 129.135 levels.

Momentum study: Both leading (RSI & stochastic curves) oscillators show downward convergence that indicate intensified bearish momentum on monthly terms and overbought pressures but indecisive on daily terms.

MACD signals downswings continuation in the major trend and mild rallies on daily terms.

The major trend, for now, has formed streaks of bearish patterns, such as, shooting star, hanging man & bearish engulfing evidence price drops below EMAs, ever since then, bears managed to retrace more than 38.2% fibonacci levels.

The current trend is stuck in range, while bearish swings are backed by the momentum oscillators.

Overall, the trend continues to be weaker on the major terms and drifts in sideways for the today.

Trade tips: On trading perspective, at spot reference: 128.838 levels, it is advisable to snap any abrupt rallies and bid tunnel put option spreads, use upper strikes at 129.135 and lower strikes at 128.297 levels, the strategy is likely to fetch leveraged yields as long as the underlying spot FX keeps dipping further until expiration.

Alternatively, we advocate shorts in futures contracts of mid-month tenors with a view to arresting potential dips.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at 90 levels (which is bullish), while hourly JPY spot index was at -19 (mildly bearish) while articulating at 06:13 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex