Spot on GBP/JPY flurry of bearish candlestick and chart patterns
GBPJPYchart and candlestick patterns occurred: On daily plotting, bearish engulfing, shooting star and hanging man patterns have occurred to counter the previous bullish trend. All these candlestick patterns are bearish in nature have occurred at 147.151, 148.528 and 146.754 levels respectively, one can observe the selling sentiments ever since then.
Yesterday’s price rallies have continued today, while bears are hovering at 7-DMAs with whipsaws pattern, let’s not forget we cannot afford to isolate this signal.
The above bearish patterns are coupled with leading oscillators and bearish MACD crossover.
Both momentum oscillators (RSI & stochastic curves) have shown constant downward convergence on both timeframes that indicate the strength and the intensified momentum in the prevailing bearish trend.
On a broader perspective, major downtrend that has gone in consolidation phase now seems little weaker again, engulfing pattern occurred at 156.929 levels on monthly terms to nudge prices below EMAs.
Trade tips:
On daily trading grounds, at spot reference: 147.608 levels, we advocate constructing tunnel spread, using upper strikes at 148.0959 and lower strikes at 147.181 levels. The strategy is likely to fetch leveraged yields as long as the underlying price keeps dipping but remains above lower strikes on the expiration.
Alternatively, one can initiate shorts in futures contracts of mid-month tenors with a view to arresting potential downside risks. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly GBP spot index is flashing -56 (which is bearish), while hourly JPY spot index was at 39 (mildly bullish) while articulating (at 06:56 GMT).
Yesterday’s price rallies have continued today, while bears are hovering at 7-DMAs with whipsaws pattern, let’s not forget we cannot afford to isolate this signal.
The above bearish patterns are coupled with leading oscillators and bearish MACD crossover.
Both momentum oscillators (RSI & stochastic curves) have shown constant downward convergence on both timeframes that indicate the strength and the intensified momentum in the prevailing bearish trend.
On a broader perspective, major downtrend that has gone in consolidation phase now seems little weaker again, engulfing pattern occurred at 156.929 levels on monthly terms to nudge prices below EMAs.
Trade tips:
On daily trading grounds, at spot reference: 147.608 levels, we advocate constructing tunnel spread, using upper strikes at 148.0959 and lower strikes at 147.181 levels. The strategy is likely to fetch leveraged yields as long as the underlying price keeps dipping but remains above lower strikes on the expiration.
Alternatively, one can initiate shorts in futures contracts of mid-month tenors with a view to arresting potential downside risks. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
Currency Strength Index: FxWirePro's hourly GBP spot index is flashing -56 (which is bearish), while hourly JPY spot index was at 39 (mildly bullish) while articulating (at 06:56 GMT).