USD/JPY chart pack – technicals and trading setup
USD/JPY chart pack – after shooting star and hanging man, now gap down candle on verge of forming double top pattern – Trade via tunnel spreads:
The flurry of bearish candlestick patterns occurred at peaks of USDJPY rallies.
Shooting star pattern is traced out 114.975, hanging man at 115.224 levels, now a gap down opening has popped up at 114.396 levels.
As a result of above bearish patterns the current price has gone below DMAs, now price behavior is on the verge of forming the double top pattern with top 1 at 115.624 and top 2 at 115.378 levels.
You could observe USDJPY bears extend previous price drops after shooting star placed at 114.863 levels (Refer daily charts).
To begin 2017 USDJPY dropped vigorously from the highs of 118.608 levels to the current 113.610 levels, the flurry of bearish streaks occurred especially after Whipsaws in the uptrend that indicates weakness on Fed’s minutes that includes gradual hiking hints.
The current prices have dipped well above 21DMAs on daily charts, for now, don't expect sharp rallies nor a steep slump as it is likely to test support at 113.169 levels, and it is better to go short upon breach below these levels that favors bears.
RSI signals the strength in selling interests as it converges to the consistent downswings on both daily as well as 4H charts, while Stochastic has been indecisive but momentum in selling sentiments has been absolutely in bears favor.
Same is the case with leading oscillators on weekly terms to confirm the intensified selling momentum as both RSI and stochastic have been converging to the prevailing price downswings.
While daily MACD has signaled the downtrend likely to extend.
Trading tips:
Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 115.0350 and lower strikes at 114.007 levels.
Alternatively, we advocate shorting futures contract of near-month expiries on hedging grounds that safeguards FX exposures from the potential risks of plummeting up to 111.202 levels.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
The flurry of bearish candlestick patterns occurred at peaks of USDJPY rallies.
Shooting star pattern is traced out 114.975, hanging man at 115.224 levels, now a gap down opening has popped up at 114.396 levels.
As a result of above bearish patterns the current price has gone below DMAs, now price behavior is on the verge of forming the double top pattern with top 1 at 115.624 and top 2 at 115.378 levels.
You could observe USDJPY bears extend previous price drops after shooting star placed at 114.863 levels (Refer daily charts).
To begin 2017 USDJPY dropped vigorously from the highs of 118.608 levels to the current 113.610 levels, the flurry of bearish streaks occurred especially after Whipsaws in the uptrend that indicates weakness on Fed’s minutes that includes gradual hiking hints.
The current prices have dipped well above 21DMAs on daily charts, for now, don't expect sharp rallies nor a steep slump as it is likely to test support at 113.169 levels, and it is better to go short upon breach below these levels that favors bears.
RSI signals the strength in selling interests as it converges to the consistent downswings on both daily as well as 4H charts, while Stochastic has been indecisive but momentum in selling sentiments has been absolutely in bears favor.
Same is the case with leading oscillators on weekly terms to confirm the intensified selling momentum as both RSI and stochastic have been converging to the prevailing price downswings.
While daily MACD has signaled the downtrend likely to extend.
Trading tips:
Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of the debit put spreads.
This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 115.0350 and lower strikes at 114.007 levels.
Alternatively, we advocate shorting futures contract of near-month expiries on hedging grounds that safeguards FX exposures from the potential risks of plummeting up to 111.202 levels.
Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.
