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EUR/JPY bearish set up - buy binary puts for certain yields

FX:EURJPY   Euro Fx/Japanese Yen
107 0 5
This pair has given up the momentum in recent gains, rejected at yesterday's highs of 127.154 levels (near resistance at 127.619) to push further downside.

The resistance was then near upper Bollinger band at 127.465 where it has lost buying interest.

The current prices are now testing minor supports at 125.800 levels.

The pair is still steaming up with heaps of other bearish indications by leading oscillator in addition.

Currently, on daily plotting RSI (14) trending below near 50 levels (while articulating) diverging to the previous short term short term rallies.

While, %D crossover above overbought zones signals the selling momentum , as a result bears would be on upper hand.

As stated earlier in our long term trend analysis the pair is forming a sloping channel and more downside targets are on the cards. Bears taking over the rallies to evidence every dips with ease and with huge volumes (see weekly & monthly charts for volumes conformity).

As a result, both weekly prices have again slipped below 7 & 10EMA curves, hence it is perceived as ongoing downtrend would drag further.

Most probable scenario would be that it may dip back upto 125.175 levels and then retest of channel support is also potential scenario.

Hence, using these deceptive rallies, it is smart to buy one touch delta binary puts for above specified targets to give leveraging effects to the profitability where implied volatilities of this pair is considerably higher at around 13.15%.
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