FxWirePro: USD/JPY price, volumes, and OI move in tandem, major trend likely to retrace 38.2% Fibos – Bid for One touch binary put to magnify yields

Gravestone doji and shooting star candlestick patterns have occurred at 111.875 and 111.949 levels.

Ever since bearish candlestick patterns have occurred at peaks of recent rallies, bullish sentiments are totally waned out. For now, big bearish engulfing candle takes price dips below 21DMA, expect more dips upon bearish momentum & potential bearish DMA crossover.

Please be noted that right along with price dips, it is observed that the considerable rising volumes are formed. In addition to that, falling prices with rising volumes and steady or rising open interest is confirmed bearish indication which is quite visible on 4H charts.

On a broader perspective, the break out and sustenance below 23.6% Fibonacci levels with a bearish candle with the big real body is indicating more price dips upto 38.2% Fibonacci retracements, the current prices are well below EMAs (refer monthly plotting).

While momentum oscillators’ signal selling pressures on both time frames, and the major trend has resumed bearish sentiments (refer both daily and monthly charts).

Since you can figure out the failure swings several times below stiff resistance at 114.496 and 115.440 levels and losing strength in rallies, hence, don't expect any sharp rallies as the trend for the day seems to be nondirectional but bearish bias.

To substantiate this stance, MACD, has been indecisive at bearish territory on monthly terms and shows bearish crossover in the bearish territory to indicate the non-directional trend but slightly bearish on daily terms.

Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -21 levels (which is mildly bearish), while hourly JPY spot index was at shy above -23 (bearish) at the time of articulating (at 06:01 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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Trading tips:

Well, as a result of above technical reasoning, on speculative grounds we advise one touch binary puts snapping every rally.

This strategy is likely to fetch leveraged yields than spot FX as long as it keeps dipping below strikes on or before expiry.