We had already urged for the upswings after testing supports at 126.362 levels, thereafter, you’ve seen the effects so far.
For now, more rallies are likely but see stiff resistance at 138-139 levels. Current prices are well above DMAs.
On the contrary, the bears in major trend sliding consistently below 7DMA (see monthly chart), more rallies likely for now but if it may sense pressure as it nears to 7EMA.
We are not isolating this signal, both leading and lagging oscillators indicate sentiments in the short run (see dailies) and selling pressures may resume in medium run (see monthly).
Bulling momentum is intensified as we can make out from the leading oscillators converging upwards along with the spiking prices.
While (14) trending above 75 levels on that signals the strength in buying interests that could drag us to the 138-139 marks.
oscillators have reached overbought territory but no traces of %D crossover, instead intensified buying momentum is observed.
has just entered into trajectory with a crossover on daily graph.
Use upswings to deploy “credit put spreads”
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 (-1.5%) in the money put with positive theta if you expect that GBPJPY 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.