FxWirePro: Monthly whipsaws pattern in USD/JPY brings in vigorous rallies, “never buck the trend”

After whipsaws pattern for last four and half months, we see convincing upswings that jump above 7SMA and breach a resistance of 103.223 levels.

This week we are seeing a big candle with the bullish real body after the occurrence of hamper pattern is occurred at 101.279 levels on weekly terms.

While leading oscillators confirm buying momentum as both RSI and stochastic evidence positive convergence to the rallies on weekly plotting.

On a broader perspective, the trend has still been moving in sideways after bearish rout for almost 1 year or so, the prices are holding stronger at 100.389 levels.

Upside potential in the pair capped at 21EMA (upside range in whipsaws and 21EMA), short-term sentiments are bullish bias. 

Downside likely find support at 101.747 mark, the break below could see the retest of recent lows of 100 and below targets. 

On data front, the US unemployment rate is the major focus for the day, and have disappointed the streets by missing forecasts.

On a broader perspective, the major downtrend still appears to be intact as the price declines in the sloping channel but holding stronger for now.

Trade tips:

One can go long in near month futures for targets of 104.705 levels with a strict stop loss of 103.223 levels.

Well, on an intraday trading perspective, boundary options with higher strikes of 104.189 levels and lower strikes at 103.223 levels are fairly suitable but in long run, this is certainly not yet an ideal time for fresh longs.