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Use AUD/JPY rallies to speculate but shorts for LT investment

FX:AUDJPY   Australian Dollar/Japanese Yen
112 0 7
During convincing rallies of AUDJPY             , the current prices have jumped above 7DMA.

We’ve traced out an inverted hammer candle pattern at 76.947 level which is bullish in nature.

As a result of this pattern, we could also notice a gap up opening and today’s sustenance as a confirmation. So the prevailing rallies could be dragged up to strong resistance at 78.674 in near terms but even if it changes the direction one shouldn’t be surprised as the major downtrend seems intact on monthly charts.

However, leading oscillators on a  daily chart are in convergence with the on-going upswings; we believe these as abrupt bulls are getting active again. RSI is currently trending above at around 42.3615 that is intensifying the strength in rallies.

In addition to that, stochastic curves evidence convergence to these rallies right from 20 which is oversold zone. This leading indicator has been signaling the intensified momentum in short term rallies.

Having said that, thereby bull rallies began on last Friday observing more momentum that could offer some short-term bullish speculation.

The current prices on monthly chart still show weakness as it’s been dropping well below EMA curves consistently and leading indicators on this timeframe have been bearish bias.

Trade tips:

Thus, on a speculative grounds one can buy one touch binary calls for leveraging benefits of bullish targets as the RSI and stochs would determine the direction of next short-term upswings but a little bias towards the south.

But on hedging grounds stay short in mid-month futures for southward targets of 76.184 levels.

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