FxWirePro: AUD/JPY displays hanging man, shooting star and doji to signal weakness, major trend exhausts at stiff resistances of 61.8% Fibos

Hanging man, shooting star & long-legged doji have occurred at 88.963, 88.841 and 88.964 levels respectively to plummet prices below SMAs, more slumps on cards upon bearish SMA crossover (7SMA crosses below 21SMA), both leading & lagging oscillators signal weakness to continue. 

Well, AUDJPY major trend that was in the consolidation phase from the lows of 72.437 since June 2016 retraced almost more than 50% Fibonacci level. But for now, the bears now repeat the history near 61.8% Fibonacci retracement levels, the bull-swings seem to be exhausted at this juncture.

As a result, shooting star pattern has occurred in the recent history at 88.097 levels which is bearish in nature. Ever since then bears have managed to trim gains considerably.

Momentum in the uptrend on intraday term seems to be intensified as both RSI and stochastic curves are converging to the price dips and on weekly terms faded strength in the previous rallies is observed.

The extension of the rallies only on breach and sustenance above stiff resistance of 89.413-90.431 levels

But this event seems unlikely in near run as bearish MACD crossover to substantiate the downtrend continuation.

Trade Tips:

Contemplating above stated technical reasoning, on speculative grounds, we advise buying one touch binary put options.

As long as underlying spot FX keeps dipping, the strategy is likely to derive exponential yields than the spot movements.

Alternatively, shorting mid-month futures contract are also advocated with a view to arresting downside risks.

Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards -122 levels (bearish), while hourly JPY spot index was at 3 (neutral) while articulating at 09:50 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

These indices are also conducive to our above-advocated strategy.

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