FxWirePro: EUR/JPY upswings foresee more bullish potential on resembling morning star formation – Digital calls to fix l
Although EUR seems to have taken a halt from its momentary bull run against JPY (see 1H plotting), we see healthy momentum in upswings upto 114.606 levels.
Strong resistance at 114.606 levels.
Upswings in EURJPY spiked above SMAs after the formation of a resembling morning star pattern candlestick which is bullish in nature.
For now, the jump above SMAs exposes more upside potential owing to more bullish momentum offered by leading oscillators which is in convergence with the price spikes.
We could see more alarms for momentary bears as the pair bullish momentum is clear for the day.
Both leading oscillators signal buying interests, as RSI evidences a bullish convergence with the rising prices after testing support at 113.946 levels, currently trending upwards at above 48 levels, so we believe there has been buying sentiments atleast in short term trend.
While stochastic has been quite decisive to signal momentum in this buying sentiment but slightly bullish bias (clear %K crossover above 20 levels).
On the flip side, inverse saucer extension pattern has been showing their bearish effects on monthly patterns.
RSI and stochastic on this timeframe (see monthly charts) has been bearish bias but for now bulls resuming rallies are on the verge of testing strong resistance at 114.606 levels.
Trade tips:
For traders it is all about money management skills that keep them on competitive edge, this can be achieved when your research is certain, it is wise to choose the right asset avenue to stay invested for more returns than usual, (for instance, wouldn’t you be happy to gain 10 times than 1 time).
Well, on speculative grounds, we recommend buying rallies and decide to initiate one touch call options which are highly leveraged products. Since 1W implied volatility is on the higher side at around 8.6% in a slightly bullish environment in the short term, we recommend this long vega strategy.
