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What do you ponder over EUR/JPY’s 61.8% fibo retracements?

FX:EURJPY   Euro Fx/Japanese Yen
111 0 7
What do you ponder over EUR/JPY’s 61.8% fibo retracements? Inverted saucer likely to extend, option tunnel spreads to speculate:

At least by now stubborn bulls would have believed the previous downtrend offered more shorting opportunities.

Any layman could now argue stating that it is mere a fundamental effects due to the geopolitical and economic turmoil that took place between EU and the UK, but it is again proven that technicals take care of fundamentals majority of the times. Because we consistently kept urging for shorts in long run ever since the pair formed some bearish patterns on monthly plottings. Please refer below weblinks for historical evidences of our analysis on this pair.

http://www.econotimes.com/FxWirePro-Spinning-top-Doji-patterns-signal-EUR-JPY-weakness-more-downside-potential-upto-132-regions-111612

http://www.econotimes.com/FxWirePro-Dont-risk-your-investment-in-EUR-JPY-not-safe-zone-to-add-fresh-longs-130407

http://www.econotimes.com/FxWirePro-EUR-JPY-breaks-channel-line-support-to-reach-3-years-lows-drag-upto-120403-is-on-cards-165467

http://www.econotimes.com/FxWirePro-Delta-risk-reversal-suggests-EUR-JPY-ATM-puts-priced-costlier-%E2%80%93-PRBS-to-reduce-hedging-cost-101348

http://www.econotimes.com/FxWirePro-Buy-EUR-JPY-risk-reversals-capitalize-on-upswings-via-debit-spreads-for-hedging-as-IVs-spiking-higher-%E2%80%93-PRBS-for-aggressive-bears-165495

http://www.econotimes.com/FxWirePro-EUR-JPY-1W-RR-bearish-neutral-3M-signals-downside-risks-IVs-stable-good-to-hedge-via-PRBS-184224

There were plenty of times we kept maintaining our bearish stances in the long run and advocated relevant hedging strategies for these bearish risks, a foreign trader who deployed them in his FX portfolio would have saved huge.

For now, we perceive any rallies as short covering rallies and creating an opportunity for a fresh shorting opportunity.

The pair is still steaming up with piles of bearish indications by leading as well as lagging indicators.

Currently, on both daily and monthly charts, RSI (14) and stochastic have been converging to the on-going slumps (while articulating), momentum in selling would be confirmed with this downward convergence to the dipping prices.

Most importantly, it is forming inverted saucer pattern after breaking 61.8% Fibonacci retracements on monthly plotting.

MACD shows bearish crossover as the bears are taking complete control over the rallies to evidence every dip with ease and with huge volumes (see weekly & monthly charts for bear candles with big real body and volumes conformity).

The current prices on both daily and monthly have remained well below DMAs and EMAs, hence it is perceived as on-going downtrend would drag further.

Trade tips: Option Tunnel Spread

As a result of above technical rationale, no wonder if it hits 109.109 levels near term in intraday terms.

Hence, on intraday terms using the deceptive rallies, you decide to initiate an option tunnel spreads as we rely on stochastic and RSI and as they pop up with momentum in selling pressures thus far, so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured as a binary version of conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above-mentioned targets on either side.
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