FxWirePro: Expect USD/JPY hampered bullish momentum as trend evidences whipsaws pattern – Bid boundary binaries in narrow array

USDJPY bounced vigorously from the lows of 101.190 to the current 117.569 levels, this flurry of bullish streaks is during Fed’s announcement of rate hikes and forward guidance.

The current prices have consistently been spiking well above DMAs on daily EMAs so far on both daily and weekly plotting, but for now, don't expect the sharp rallies nor a steep slump, and it is better to devise trading plans in range bounded trend for sometime.

RSI signals losing strength in previous buying interests as it converges to the mild sideways to downswings, while Stochastic has been indecisive but momentum in buying sentiments has been absolutely shrunk away.

Same is the case with leading oscillators on weekly terms to confirm the shrinking buying momentum as both RSI and stochastic have been diverging to the previous price upswings.

Most importantly, whipsaws pattern that has lasted for 2 weeks which is contrary to the previous upswings that’s been hovering at 7DMA.

While MACD has been little indecisive on daily but signals downtrend likely to extend.

Ever since the pair has shown a gap up pattern on 07/11 that has gone above DMAs, the current upswings have managed to break-out important resistances of 104.328, 105.529, 106.870 and currently attempting to break out above 111.063 levels, but for today the pair is sensing little bearish pressure at this juncture, however, don't expect steep slump, Capture dips to add longs.

Well as a whole, the trend has lost momentum in the uptrend, the price may either go in sideways or slight dips can also be expected.

Trade tips:

On an intraday trading perspective, for leverage benefits, it is advisable to buy boundary binaries on dips with upper strikes at 117.798 and lower strikes at 116.955.