FxWirePro: EUR/JPY shooting star to bear trap, capitalize on bearish DMA crossover, major trend breaches 50% Fibos, on verge of 1-1/2 years highs

Bulls gain traction after hammer formation at 128.4400 levels, consequently, the current prices have gone well beyond DMAs.

For now, shooting star candle pattern has occurred at peaks of 131.1070 levels that may get you bear-trapped as this cannot afford to be isolated, both leading and lagging oscillators are in bulls’ favor.

Thereby, the trend may go non-directional but slumps appear to be unlikely, instead, more rallies seem to be on cards upon bullish DMA crossover, confirmation from the momentum and trend oscillators.

In addition to that, bulls in consolidation phase manage to break-out above 50% Fibonacci retracements. For now, the rallies likely to extend further on bullish EMA crossover.

From the last couple of days, the trend remained in sideways (refer rectangular portion on the daily chart) but for now, with bullish DMA crossover, we get a conviction that it may breach the top line of this range. Even if you see any abrupt slumps, it should not be panicky as the major trend goes in the consolidation phase.

Both leading, as well as lagging indicators on both time frames, have been converging upwards that signifies the intensified momentum in buying sentiments of the uptrend.

Trade tips: Contemplating above technical rationale, we could foresee more upside traction in spot prices, thus, one touch binary call options are advocated in order to participate in this bullish trend sentiments along with leveraged effects in the yields.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing -15 (neutral), while hourly JPY spot index was at -57 (bearish) at 06:07 GMT. For more details on the index, please refer below weblink:

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

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