FxWirePro: CAD/JPY gravestone doji hampers bullish momentum, hammer counters – Trade one touch call and short hedge

Recently, the hammer and gravestone doji pattern candles have occurred at 84.038 (2H chart) and 84.859 levels (on the weekly plotting of CADJPY).

Last week’s gravestone doji pattern which is bearish in nature hampers the previous bullish momentum, subsequently, the bears have managed to breach below 7EMAs that is signaling weakness again.

RSI on the intermediate trend shows faded strength at 52 levels (refer weekly chart). Needless to say, for now, amid mild bullish sentiments the downtrend cannot be disregarded.

On the contrary, the sharp rallies are observed after hammer candle occurrence on intraday plotting, while the bullish convergence by RSI & Stochastic curves to the ongoing upswings signal the strength and momentum in the prevailing uptrend, for now, more rallies are expected in minor trend on bullish MACD crossovers.

On the broader perspective, the major bearish trend has now resumed especially after the breach below 21EMAs.

Trade tips: Contemplating both short and intermediate trend observations, it is wise to buy one touch binary options strategy with upper strikes at 84.615 levels, with this leveraged product one can add magnified impact on the trade yields if the underlying spot FX keeps spiking on expiration.

On the other hand, uphold shorts in futures contracts of mid-month tenors with a view to arresting further potential slumps.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly CAD spot index is displaying shy above 54 levels (bullish), while hourly JPY spot index was at 4 (neutral) while articulating (at 06:58 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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