FxWirePro: USD/JPY bulls attempt to gain traction at trendline support despite long legged doji formation on weekly terms

Bulls take trendline support on 4H charts, thereafter, prices spiked to the day highs of 113.234 levels but upswings restrained below stiff resistance, 21SMAs.

On the flip side, the flurry of bearish candlestick patterns occurred at peaks of USDJPY rallies on weekly terms.

Long-legged doji pattern has been occurred at 116.942 and 114.576 levels, hanging man pattern at 115.080 levels, for now, more dips are foreseen if this week’s downswings break 112.575 levels.

As a result of above mentioned bearish patterns, the current price has gone below 7SMAs.

To begin 2017 USDJPY dropped vigorously from the highs of 118.608 levels to the current 113.610 levels.

RSI signals the strength in selling interests as it converges to the consistent downswings on weekly but adverse signals on 4H charts, while Stochastic has been little indecisive but momentum in selling sentiments has been absolutely in bears favor.

While MACD (4H charts) has signaled despite mild upswings the downtrend likely to extend further.

Trading tips:

Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads.

This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 113.302 and lower strikes at 112.498 levels.