FxWirePro: GBP/JPY interim bulls struggle for momentum despite bullish DMA crossover – Attain leverage by constructing tunnel spreads

From last two weeks, the pair hasn’t been moving anywhere beyond 148.459 northwards nor even 142.171 on southwards.

But in the recent past, it has rejected the resistances at 144.662 levels to push below SMA curves and upto the support of 142.392 levels. Thereafter, bulls have managed to bounce back with bullish SMA crossover, but it has again rejected at the same 144.662 levels on last Friday (see 4H chart). For now, even though bulls struggling for momentum the upswings likely to drag towards 144.662.

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 diverging to the previous rising prices.

While weekly RSI (14) seems to be the replication of 4H indication, both RSI on timeframes trending below 57 levels that signal the strength in selling interests.

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 upswings.

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 144.662 and lower strikes at 144.038 levels.