USD/JPY takes support at trendline, expect interim upswings

FX:USDJPY   U.S. Dollar/Japanese Yen
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USD/JPY takes support at trendline , expect interim upswings upon breach above 21DMA but major downtrend still seems intact:

The upswings seem most likely as the pair takes trendline support at 100.521 levels.

If the current prices jump above 21DMA decisively, that signals more buying sentiment in the short term.

One can easily observe as and when it takes trendline support, the price began bouncing back atleast 50% distance of the channel, for now, bulls have shown buying interest, both leading and lagging indicators signal momentum in this buying interest to evidence extended upswings in the short run.

On a  daily chart , both leading oscillators converge the on-going upswings, that signals intensified bullish momentum in this pair.

Current, RSI is trending upwards at 46 and above, while %K crossover on slow stochastic oscillator right from the oversold region is persisting which is a good sign for short-term bulls.

But on the contrary, price behaviour on monthly plotting has been bears favour and this trend is likely to prolong further.

Lagging indicator ( MACD ) has just indicated that the long-term downtrend to be prolonged despite the expectation of some interim gains.

Trading tips:

Since the pair has been oscillating to slide within a range between above mentioned channel from the last couple of weeks but for minor trend has been slightly bullish , on intraday speculative grounds, we recommend buying one touch binary calls in order to derive maximum leverage benefits from this upswing momentum.

Wider spreads indicate the lack of liquidity. Anywhere between above stated range up to upper levels, the spreads for one touch USDJPY             options are steady tenor and barrier levels (i.e. up to 104) is a quite possible event.

However, for medium term traders on delivery grounds, we would like to go short in near month futures on hedging grounds.

Please be noted that both the calls are exclusively meant for speculation and hedging purposes respectively and for intraday and delivery basis.
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