FxWirePro: GBP/JPY bulls drag rallies despite shooting star but major downtrend still intact – Speculate rallies via boundary binaries with pinch of salt

GBPJPY resume bull swings to the current levels of 139.572 from yesterday’s close of 139.129 levels, attempts of bounces restrained below a stiff resistance of 140.235 levels as bearish pattern pops up which is the shooting star at 139.129 levels.

This week’s upswings so far have taken the pair beyond DMAs, we foresee northwards journey upto next immediate resistance at 140.235 levels, as it reaches that level prices are likely getting contracted.

Please be noted that stochastic oscillator is just entering into overbought trajectory and not traces of bearish crossover which means ongoing bullish sentiments are likely to continue but with a pinch of salt. While historically, RSI has shown fading strength in rallies at 58 levels.

Well on a broader perspective, shooting star at 144.328 levels on monthly plotting restrain rallies below 7EMAs, expect more dips upon failure swings at the resistance of 7EMAs.

Selling momentum is intensified as the leading oscillators still converging downwards.

Monthly RSI (14) is trending below 45 levels that signal the strength in selling interests.

We are not isolating this signal; both leading oscillators indicate the struggling buying momentum.

The same has been the case on stochastic curves, this oscillator has reached oversold territory but no traces of convincing %k crossover.

Despite the week’s robust rallies, the major downtrend still appears to be intact. Although it has tested trendline support at 135.579 and bouncing back above WMAs, the bearish like shooting star cannot be disregarded. Instead, wait for a decisive breach above 140.235 levels to get a better clarity in medium term bullish speculation.

MACD on the other hand signals indecisiveness but remained in bearish trajectory on both daily as well as monthly terms.

In the major downtrend, as the current prices remain well below 7EMAs, any failure swings below 140.235 levels we foresee the retest of supports at 133.878 levels.

Trade tips:

Contemplating above daily bullish sentiment, on trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 140.235 and lower strikes at 139.129 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX remains within these strikes on or before the binary expiry duration.