FxWirePro: EUR/JPY shooting stars evidences 3-month lows, bears in major trend on track to form handle pattern adjoining to inverse saucer

Shooting stars are occurred at 120.4160, 120.5150 and 121.0110 levels.

The previous upswings are absolutely exhausted after whipsaws from 8-weeks, for now, shooting stars are now dragging price declines to 3-months lows (refer daily charts).

After inverse saucer on EURJPY, adjoining handle pattern is now on cards as interim bulls seem to be absolutely exhausted at 21EMAs (refer monthly charts). 

As stated in our recent technical write up on this pair, rallies have extended upto 124.0940 levels or 21-EMA on monthly plotting. As a result, the bear swings seem to be gaining selling interest at this juncture, that is where attempts of price drops are considerable.

Subsequently, on monthly plotting, RSI (14) has been converging below 55 levels (while articulating) to the declines that signal the strength in downtrend, while stochastic curves are also (at 50 levels)evidencing %D crossover that signal strong selling momentum but this has been little indecisive on monthly terms although bearish biasedness is seen.

Both leading indicators on daily terms signal intensified selling momentum, while MACD with bearish crossover indicates the extension of price declines.

Thereby, the 6 months of consolidation phase now seems to be deceptive and extension of dips seems most likely as lagging oscillators have been indecisive but slightly in bears favor.

Since the current price has been consistently sliding below 7 and 21DMAs from last week, for intraday trading perspective, it is advisable to buy one touch binary puts.

Trading tips:

For intraday trading perspective, at spot reference: 118.3700 levels, it is advisable speculating the bearish bets via one touch binary puts for further southward targets for the day.

Use these speculative instruments for adding the magnifying effects to the profitability when the research is so certain.