EURJPY rallies likely to drag as the bulls breach stiff resistance at 116.250 levels and sustain above these levels, the major trend appears to be in the consolidation phase.
Bulls manage to break out above resistance of 116.250 (see weekly chart), the current upswings consistently remain well above SMAs and 7SMA crosses over 21SMA which is a crossover.
Rallies likely to extend upto 121.526 levels as both leading and lagging indicators at this juncture indicate the extension of swings.
Currently, on weekly plotting (14) converging above 56 levels (while articulating).
While, curves are indecisive at overbought zones.
and moving averages on this timeframe are indicative to the trend to prolong; as a result, bulls would be gaining traction in their buying interest amid rising prices.
Well, the current upswings in major trend (see monthly charting) test strong support at 113.401 but below EMAs and major downtrend drifting into sideways to mild upswings.
This pair is bias in short run but seems to have given up the momentum in recent gains at resistances at 7 & 21 EMAs to push further downside.
As stated earlier in our long-term trend analysis, it cannot be deemed as the reversal pattern as the trend goes in consolidation phase from last 4-5 months, wait for the better clarity from the technical indicators to signal the long term trend reversal.
The most probable scenario would be that it may retest recent highs of 121.526 levels in short run. But for today, since bears resume 119.782 levels we see speculative opportunities in boundary binary options.
For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 120.160 and lower strikes at 118.372.
This strategy is likely to fetch leveraged yields than spot FX as long as underlying spot remains between the two strikes.