Although the pair is bias for the day, seems to have given up the momentum in recent gains at resistances of 113.343 (see 4H chart), has been positively converging to the upswings.
Since the bulls have managed to break out resistance above 114.848 levels recently, the rallies may drag further up to next resistance of 116.537.
Current prices have jumped above DMAs with 7DMA crossing over 21DMA and has evidenced crossover, this would mean that bulls wings may prolong further.
On the contrary, the pair is still steaming up with heaps of other indications by both leading and lagging indicators on monthly charts.
Currently, monthly plotting has been converging below 42 levels with long term bear declining trend.
While curves have reached oversold region but unable to generate buying interest despite rising prices (no traces of %k crossover).
Most notably, the price behaviour is on the verge of extension of inverted saucer pattern.
As stated earlier in our long-term trend analysis more downside targets are on the cards as the bears taking over the rallies to evidence every dips with ease and with huge volumes (see monthly charts for volumes conformity).
and moving averages are indicative to the bear trend to prolong.
Amid current potential upswings, the most probable scenario would be that it may retest recent lows of 111.824 levels in medium terms again.
FX Option Strategy: Credit Put Spreads ( CPS )
Well, any abrupt upswings should not be panicky, instead deploy them in the below option strategy.
Using these deceptive rallies, you decide to initiate a bull put spread at net credits that is likely to fetch certain yields, short 1W (-1%) in the money put with positive theta if you expect that EURJPY will spike up moderately over the next near future but certainly not beyond your imagination, simultaneously, buy next month at the money -0.49 delta put option.