The flurry of patterns occurred at peaks of USDJPY rallies.
pattern is traced out 114.975, at 115.224 levels, now a gap down opening has popped up at 114.396 levels.
As a result of above patterns the current price has gone below DMAs, now price behavior is on the verge of forming the pattern with top 1 at 115.624 and top 2 at 115.378 levels.
You could observe USDJPY bears extend previous price drops after placed at 114.863 levels (Refer ).
To begin 2017 USDJPY dropped vigorously from the highs of 118.608 levels to the current 113.610 levels, the flurry of 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 , 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.
signals the strength in selling interests as it converges to the consistent downswings on both daily as well as 4H charts, while 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 and have been converging to the prevailing price downswings.
While daily has signaled the downtrend likely to extend.
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 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 contract are expected to maintain margins in order to open and maintain a short position.