FxWirePro: GBP/JPY major bearish trend goes in sideways, more potential in shooting star – boundary binaries to trade and short hedge

On daily plotting, shooting star and gravestone doji patterns occurred at 139.570 and 139.425 levels respectively.

The current price behavior is forming an asymmetric triangle pattern. The bulls have been taking support at baseline of the triangle, hence, the price action goes in sideways.

The prevailing upswings at this level likely to test stiff resistance as a result of these bearish formations.

On monthly plotting, shooting star occurred at 144.328 levels, consequently, we’ve seen price declines from last two months that has taken the current prices below 7EMAs in spite of this month’s attempts of upswings.

For now, any failure swings below resistances of 140.289 (top line of an asymmetric triangle) and 140.703, resumption of the major downtrend is most likely.

No momentum for bulls or bears on monthly terms as we can make out from the leading oscillators (RSI indicates strength in bullish sentiments is fading away, while stochastic curves have been indecisive).

MACD on both daily and monthly terms have been little indecisive but signals the extension of its downswings.

On hedging grounds, initiate shorts in futures contracts of mid-month tenors to arrest the potential slumps upto 133.878, keep a strict stop loss of 143.482 levels.

Alternatively, on speculative grounds, below boundary binary options are advocated that is suitable at this juncture.

For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 140.703 and lower strikes at 139.8194 levels.