FxWirePro: No traces of bears for USD/JPY despite sharp spikes above DMAs and EMAs, bull trend may go flat but no steep slumps – One touch call best option

As anticipated Fed delivered 25 bps of hikes in its funds rates, consequently, USDJPY bounced vigorously from the lows of 114.772 to the current 117.521 levels.

The current prices have consistently been spiking well above DMAs on daily EMAs on weekly and monthly plotting, for now, don't expect a steep slump, instead, capture dips to add longs on bullish EMA crossover.

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.

RSI still signals strength in current buying interests, while Stochastic signals momentum in buying sentiments.

Same is the case with leading oscillators on weekly and monthly terms to confirm the buying momentum in major trend as both RSI and stochastic have been converging to the price upswings.

Most importantly on a broader perspective, whipsaws pattern that has lasted for 4-5 months in the major downtrend now evidences upswings that go above 21EMA.

While MACD has been little indecisive on daily but weekly plotting evidences uptrend likely to extend.

For now, the trend has gained some traction for upside potential and trending above 10-months highs after bearish rout for almost 1 year or so. Hence, the swings may go little flatter but definitely not a steep slump.

Trade tips:

On an intraday trading perspective, for leverage benefits in uptrend sentiments one touch binary call options are fairly suitable at this juncture for targets of 117.856 levels.