Bearish candle with big real body occurred at peaks of uptrend rallies that has evidenced slumps below 7DMA, to counter this bearish sentiment, Dragonfly doji has occurred at 132.3380 levels that reactivates strength back again in the previous uptrend.
While bulls take support at 21DMA but with struggling momentum, the trend goes non-directional again.
The current prices have still remained above 21DMAs despite recent price slumps (refer daily chart).
For today, the momentum in the previous rallies is hampered, thereby, the trend goes non-directional again, the current prices are attempting slide below 7DMAs.
EURJPY retraces 61.8% Fibonacci levels in the consolidation phase despite lingering overbought pressures (refer monthly chart), accordingly, boundary binaries to speculate and long hedge is advocated.
Both leading (RSI & stochastic) oscillators on this time frame have been signaling overbought pressures.
Contemplating the major uptrend and the abrupt slumps for the day, one can understand why the minor trend would be drifting non-directional mode (refer daily chart) which is why above boundary binary options strategy is recommended.
For now, the consolidation phase in the major trend still seems to be intact upon bullish EMA crossover (see monthly terms), we see confirmation from both trend indicators (MAs & MACD).
Even if you see any abrupt slumps, it should not be panicky as the strong support is seen at 131.500 - 132 levels.
Trade tips: Based on above technical rationale, we could foresee trend to remain in range, thus, on an intraday speculation, we see the price to remain well within the range between 133.1111 and 131.500. Hence, we advocate buying boundary binaries with two strikes.
The trading between these strikes likely to derive certain yields in this puzzling trend and more importantly these yields are exponential from spot movements.
For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 133.1111 > Fwd price > 131.500).
Alternatively, at spot ref: 132.490 we advocate arresting extended bullish risks by initiating longs in futures contracts of near-month expiries by keeping strict stop loss at around 131.500 levels.
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