FxWirePro: Don’t get bear trapped in GBP/JPY, rallies likely to drag upto 150 upon bullish SMA crossover – Double touch binaries for speculation

Shooting star appears at 143.597 levels, bullish momentum is reduced, as result, bearish swings slide below 7DMA but testing support at 142.555 levels (see daily charts).

On the contrary, more rallies seem likely upon breach above 138.831 (refer weekly chart), bullish SMA crossover, next see stiff resistance towards 150 levels.

Rising volumes on rising prices is in conformity to the uptrend.

RSI Upward convergence signal strength in rallies, while %K crossover even above 80s on stochastic curves indicates bullish momentum.

MACD bullish crossover signals the upswings likely to extend further.

Trade tips:

On intraday speculation purpose, contemplating above technical reasoning, we could foresee equal chances for both bears and bulls with 142.55 as strong support with the bullish bias.

Hence, double touch option is useful for traders who believe the price of an underlying asset would undergo a large price movement, but who are unsure of the direction.

A trader can use a double touch option with barriers at 144.736 and 143.490 to capitalize on this outlook.

Some traders view this type of exotic option as being like a straddle position since the trader stands to benefit on a calculated price movement up or down in both scenarios.

In this case, the trader stands to make a profit if the rate moves beyond either of these levels before expiry, and he/she stands to lose the premium if the rate remains within these barriers.