FxWirePro: EUR/JPY pops up with resembling engulfing candle to signify major trend’s exhausted consolidation phase at 38.2% Fibos

The major trend has bearish, while consolidation phase has been observed from last one year or so.

But in the recent past bull swings in consolidation phase seem to be exhausted at the stiff resistance of 124.105.

Rallies may inch towards the same resistance but more clarity of consolidation phase only above 38.2% Fibos (refer monthly charts).

While in short term trend, both leading oscillators signal overbought pressures, RSI reached above 70 level, stochastic curves have also been evidencing %D crossover right from the overbought zone that signals intensified selling momentum but this has been adverse on monthly term although bearish biasedness is seen at this juncture.

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.

Trading tips:

Contemplating above technical reasoning, for intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 124.1384 (7DMA) and lower strikes at 123.385. The speculators are likely to add magnifying effects to their yields as long as spot FX remains within these strikes on expiration.