FxWirePro: USD/JPY back in sloping channel after rejection at stiff resistance, major trend goes in sideways with shooting star formations

Ever since the rejection of stiff resistance of 114.454 levels, the price behavior again goes in sloping channel, the price dips have again gone below 21DMA, for now, one can expect more dips upon bearish DMA crossover which seems most likely.

On a broader perspective, negligible interim rallies stuck in the tight range between 115.440 and 108.133 levels, while momentum oscillators’ signal selling pressures and the major trend has again resumed bearish sentiments (refer both daily and monthly charts).

Since you can figure out the failure swings several times below stiff resistance at 115.440 levels and losing strength in rallies, even though it is testing strong support at 111.4484 levels (21EMA) don't expect sharp rallies as the trend for the day seems to be non-directional.

Shooting stars & gravestone doji are occurred at this resistance levels, as a result, the bears managed to evidence price dips.

RSI on both daily and monthly terms signals strength in selling interests as it converges to the downswings, while Stochastic has been indecisive on both dailies and monthly plotting but slightly bearish bias.

MACD, on the other hand, has also been indecisive to indicate the non-directional trend but slightly bearish on daily terms.

Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -114 levels (which is extremely bearish), while hourly JPY spot index was at shy above -43 (bearish) at the time of articulating (at 06:27 GMT). For more details on the index, please refer below weblink:

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

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Trading tips:

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

This strategy is likely to fetch leveraged yields than spot FX and certain yields keeping upper strikes at 112.6395 and lower strikes at 111.595 levels.