Ever since the pair has tested support at channel base both daily and monthly charts, upswings are strengthened, and prices have jumped above DMAs and 7DMA crosses over 21DMA that shows the strength in prevailing upswings.

For now, the strong resistance is seen at 107.674 levels, daily speculators may expect a sideway trend to mild upswings in the short term but to be utilized for mitigating long-term bearish risks.

Although the strong support has been taken on the monthly basis, price declines are observed through the sloping channel, both leading and lagging indicators are conducive for this major trend.

RSI moving in sync with price upswings, so strength in the price rallies is still pretty much visible.

While %K crossover even above 80 zone on daily plotting signals buying interest for the day.

Considering the RSI and stochastic oscillators’ indications on daily charts, the bullish momentum is still supportive for the day but not beyond 107.674 ahead of Fed and BoJ's monetary policies scheduled for this week.

The BoJ announcing “helicopter money” is unlikely, in our opinion. Instead, we expect it to cut IOER further and increase ETF/JREIT purchases at next week’s meeting.

On a broader perspective, USDJPY’s further price decline is also dependant on Fed’s fund rates, we do not expect a hawkish FOMC statement; the central bank officials are likely to wait until the August Jackson Hole meetings for more decisive signals about a September hike.

Thus, considering the use of short-term price rallies in mind, we reckon, irrespective of the swings, boundary binary options would fetch certain yields keeping 107.674 as the upper strike and 105.450 as lower strikes in the binary strategy. But on hedging grounds, long-term investors staying short in mid-month futures is advisable.