GBPJPY forms shooting stars at 149.464 and 151.214 levels respectively.
Despite the occurrence of these bearish patterns, the bull swings seem to be extending today at 151.254 levels.
After a big bullish pattern candle formed on 31st Oct that has engulfed last three days’ candles, shooting star popped up yesterday to show little skepticism.
However, the rallies likely to extend upon confirmation from both leading & lagging indicators.
From last three months, these upswings so far have taken the pair beyond 21EMA levels, we foresee northwards journey upto next stiff resistance at 156.660 if bulls manage to breach above 152.121 (i.e. 38.2% levels).
Please be noted that stochastic oscillator has entered into overbought territory on both daily as well as monthly terms, but no convincing traces of bearish crossover which means ongoing bullish sentiments are likely to continue with a pinch of salt as this leading oscillator approached overbought zone.
While RSI has been indicating the strength in the uptrend by evidencing upward convergence on both timeframes.
On a broader perspective, shooting stars have occurred at 144.285 and 142.752 levels respectively on monthly plotting, but bullish engulfing counters to break above 23.6% Fibonacci retracement levels, consequently, ongoing rallies are on the verge of hitting 152.121 levels (i.e. 21EMA & 38.2% Fibos).
Buying momentum is intensified on this timeframe as well as the leading oscillators are converging upwards.
Monthly RSI (14) is trending above 60 levels that signal the strength in buying interests.
We are not isolating this signal; with the boosted buying momentum confirmed by both leading oscillators, the current prices remain well above 21EMAs on monthly terms and bullish DMA crossover on daily terms.
In addition, to substantiate these bullish stances, MACD on the other hand, signals the extension of the bullish trend on monthly terms.
Contemplating above daily bullish sentiment, on trading perspective, it is advisable to buy one touch binary call on dips, this speculative instrument is likely to fetch leveraged yields as long as underlying spot FX keeps spiking on or before the expiration.
Currency Strength Index: FxWirePro's hourly GBP spot index is shy above positive 7 (which is neutral), while hourly JPY spot index was at -74 (bearish) while articulating at 08:00 GMT. For more details on the index, please refer below weblink:
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