FxWirePro: Intensified GBP/JPY bull swings in consolidation phase on track of retracing 38.2% fibos –Leverage yields via one touch binaries

Although GBPJPY halted bull swings yesterday at 146.542 levels, after stern bullish candle with the big real body, the bulls resume rallies today despite a deceptive hanging man pattern, rallies likely to extend upon confirmation from both leading & lagging indicators for now.

From last two and a half months’ upswings so far have taken the pair beyond 7EMA levels on monthly and 21EMA on daily plotting, we foresee northwards journey upto next stiff resistance at 151.546 levels.

Please be noted that stochastic oscillator has entered into overbought trajectory but absolutely no traces of bearish crossover which means ongoing bullish sentiments are likely to prolong further. While RSI has also been showing robust strength in rallies, the leading indicator has also entered into the overbought zone but no traces of weakness.

Well on a broader perspective, Breach above 23.6% Fibonacci retracement levels, intensified bullish momentum indicate consolidation phase to hit 151.803 (i.e. 38.2% Fibonacci levels & 21EMA).

Buying momentum is intensified on this timeframe as well as the leading oscillators are converging upwards.

Monthly RSI (14) is trending above 50 levels that signal the strength in buying interests, any shrink indicated by this indicator should be deemed as a caution for the aggressive bulls.

The same has been the case on stochastic curves, this oscillator has been indicating intensified buying sentiments.

We are not isolating this signal; with the boosted buying momentum confirmed by both leading oscillators, the current prices remain well above 7EMA on monthly terms.

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

We anchor this bullish stance is only for the short-to-medium terms basis, wait for a better clarity in long-term investments.

Trade tips:

On intraday terms, as both stochastic and RSI noise with strong momentum in buying interests as they are converging to the ongoing upswings, we advocate staying long via one touch binary call options for a target of 40-50 pips.  The rationale for this trade is that when the anticipated trade turns out to be true and if the spot FX earns 1x yields, this binary option likely to fetch magnified impact on yields. Let’s say 5x yields.