FxWirePro: Shooting star appears on USD/JPY but with no substantiation, major downtrend drifts in whipsaws – Bets on boundary binaries

The shooting star appears at peaks, testing resistance at 104.328, failure swings may evidence slumps, else break-out above to drag rallies.

But we have no substantiation from any leading indicators, neither from lagging indicators.

While the leading oscillators hesitating to confirm the buying momentum as both RSI and stochastic have been indecisive to the prevailing rallies on daily plotting.

While MACD has also been unclear about the next immediate trend.

However, on a broader perspective, the major downtrend has been holding stronger at supports of 100.389 with hammer pattern, the current swings go in whipsaws pattern.

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.

After the whipsaws pattern for last four months, we see convincing upswings that jump above 7SMA and breach a resistance of 103.223 levels but one should wait for a better clarity from the substantiation from the leading and lagging oscillators.

But, this week we are seeing shooting star at 104.216 levels that is near stiff resistance on the daily terms.

The upside potential in the pair is still seen as the intraday sentiments remain bullish bias. 

Downside likely to find support at 103.223 mark, break below could see the retest of recent lows of 101.747 and below targets. 

On the data front, the US unemployment claims and advance GDP q/q are the major focus for the week.

Trade tips:

Aggressive bulls can go long in near month futures for targets of 105.192 levels with a strict stop loss of 103.223 levels.

Well, on an intraday trading perspective, boundary options with higher strikes of 104.873 levels and lower strikes at 103.223 levels are fairly suitable.