FxWirePro: GBP/JPY shooting stars pop up to resume bearish action in major trend, can it be a double top in minor trend – Buzzing yields via one touch binary puts

GBPJPY bulls managed to breach above 23.6% Fibonacci levels but haven’t been able to sustain above range resistance at 147.778 levels.

Although GBPJPY began this week with minor spikes, halted bull swings at 21DMA levels from yesterday as the bearish patterns are popping up, candles such as gravestone doji and shooting star are signaling more price dips, price dips are likely to extend further upon confirmation from both leading & lagging indicators.

In the recent history, shooting stars at the stiff resistance of 147.789 have evidenced price slumps upto the current 145.085 levels, and last two days bearish patterns have taken the current prices collapse below DMAs. For now, more dips seem to be on cards as 7DMA crosses below 21DMA which is a bearish DMA crossover.

Most notably, if the prices slumps extend further upto around 140 levels, then the potential double top formation is again a confirmation for major downtrend resumption.

From last two-three weeks’ bearish sentiments so far have taken the pair below 21DMA levels, we foresee southward journey upto next strong support at 143.482 levels.

Momentum study: Please be noted that stochastic oscillator has been converging downwards with %d crossover along with the price dips. While RSI has shown strength in bearish sentiments at 49 levels (daily chart), the leading indicator is showing faded strength in previous rallies at 51 levels on monthly plotting.

MACD, on the other hand, signals indecisiveness on monthly terms but signaled the extension of the bearish trend on daily charts.

Trade tips:

Contemplating bearish sentiment, on trading perspective, it is advisable to buy at spot ref: 145.178 (while articulating) we advocate one touch binary puts for intraday speculators in an ongoing bearish environment that is likely to fetch leveraged yields. For the investment to pay off, the price of the underlying asset only needs to hit the strike price once before the option expires and does not need to exceed this level at the time of expiry. The payout would vary greatly depending on how far away is the strike price and the time till expiration. 

Currency Strength Index: FxWirePro's hourly GBP spot index is inching towards -10 levels (neutral), while hourly JPY spot index was at shy above 145 (extremely bullish) at the time of articulating (at 06:09 GMT). For more details on the index, please refer below weblink:

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

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