FxWirePro: USD/JPY slide in sloping channel, shooting stars plummet prices below EMAs in major trend – Bid tunnel spreads to magnify yields

Negligible interim rallies stuck in the tight range, while momentum oscillators signal selling pressures, and the major trend has again resumed bearish sentiments (refer both daily and monthly charts).

The price behavior goes in sloping channel, the attempts of upswings restrain below 7DMA, expect more slumps on bearish DMA crossover.

Any failure swings at 7DMA levels to resume bearish trend.

Since the current prices have broken below strong support at 111.595 levels, don't expect sharp rallies as the trend for the day seems to be non-directional.

After shooting stars, bears managed to break below major supports at 112.575 & EMAs, No traces of bullish indication as both leading & lagging oscillators indicate bearish momentum.

RSI on both daily and monthly terms signals strength in selling interests as it converges to the downswings, while Stochastic has been indecisive on dailies but signals the intensified momentum in selling sentiments on monthly terms.

While the FxWirePro currency strength index for the dollar amid FOMC meeting today, has been extremely weaker despite relinquishing its gain yesterday (-150 highly bearish), while JPY has been neutral by flashing +23 for the day sensing some sort of gaining traction ahead of US CPI and retail sales data.

For more details on our index please visit below weblink:

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

Trading tips:

Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads for the day 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 110.462 and lower strikes at 109.589 levels.