GBP/JPY technicals & trade setup

FX:GBPJPY   British Pound / Japanese Yen
270 0 11
GBP/JPY bulls test resistance at 7DMA, major bear trend seems intact - Use upswings to deploy “credit put spreads”:

From last two days despite the attempts of bouncing back, the pair hasn’t been moving anywhere beyond 133.058 northwards nor even 131.009 on southwards.

Bears sliding consistently below 7DMA, more dips likely if it doesn't manage to break & sustain above 7DMA.

But prior to that, it has broken the supports at 133.058 levels to push below DMA curves on the  daily chart , we see more bearish effects here onwards.

We are not isolating this signal, both leading and lagging oscillators indicate selling pressures.

Selling momentum is intensified as we can make out from the leading oscillators converging downwards along with the dipping prices.

While RSI (14) trending below 21 levels on monthly charts that signal the strength in selling interests.

Stochastic oscillators have reached oversold territory but no traces of %k crossover, instead intensified selling momentum is observed.

MACD has entered into bearish trajectory with a bearish crossover on the monthly graph.

Trade tips:

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.
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