FxWirePro: USD/JPY shooting star at resistance puzzles bulls – Don’t get bear trapped but mine leveraged yields via boundary binaries

On daily plotting, the upswings have gone above 7DMAs consistently to head towards stiff resistance 114.906. For now, more rallies likely upon bullish DMA crossover.

Shooting star is occurred at 114.801 levels at this resistance levels, consequently, momentum is shrinking away.

But hammer pattern candle occurred at 112.778 levels and ever since the occurrence of this bullish pattern, bulls have been gaining the momentum in upswings.

These upswings have gone above DMAs consistently to head towards stiff resistance 114.906. More rallies likely upon bullish DMA crossover.

On monthly terms, the uptrend has gone above 7 and 21 EMAs, expect more rallies upon breach above stiff resistance and bullish EMA crossover.

Short term trend is mildly bullish bias as long as immediate supports at 112.0661 (7EMA) maintains convincingly. 

Leading oscillators on both daily as well as monthly terms are converging to the price upswings to signal healthy bullish momentum.

MACD on the hand also indicates the bull trend to prolong further. Hence, we could foresee the retest of recent highs of 118.608 is quite possible.

For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 115.37 (upper BB) and lower strikes at 114.5203 (7DMA) which means upward travel maximum up to 20-25 pips and 25-30 on southward targets within the binary expiry duration.

Alternatively, on hedging grounds add longs in futures contracts with mid-month tenors to arrest these potential upside risks ahead of Fed’s hiking cycle.