FxWirePro: Daily Shooting star on GBP/JPY evidences slumps below DMAs and strong support, major trend to resume on monthly shooting star occurrence

The shooting star that was traced at peaks of 146.707 levels evidences price drops to slide below DMAs and have broken supports of 138.921 and 137.246 levels on southwards.

The rallies in the recent past, have also been rejected the resistances at 148.637 levels to push below 7EMA curves.

As a result, shooting star has formed on monthly plotting as well and the slumps up to the support of 133.878 levels seem more likely.

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

Selling momentum is intensified as we can make out from the leading oscillators converging to the previous rising prices.

Daily as well as weekly RSI (14) seems to be indicating strength in declining trend, RSI on both timeframes trending below 50 levels that signal the strength in selling interests. Daily RSI has entered into oversold territory with bearish convergence.

While the same has been the case on stochastic curves, this oscillator has reached overbought territory attempting for %d crossover, slight selling momentum is observed.

MACD, on the other hand, signals the extension of its downswings.

Trade tips:

Well, as a result of above technical reasoning, on speculative grounds we advise tunnel spreads which are binary versions of debit put spreads.

This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 139.455 and lower strikes at 136.293 levels.