We are not isolating this signal, both leading and lagging oscillators indicate selling pressures.
The current prices are attempting to drift below 21DMAs on , so downtrend would likely continue in the short & medium run as well.
While selling momentum seems to have been intensified as we can make out from the leading oscillators converging downwards along with the dipping prices.
(14) trending below 43 levels that signals the strength in selling interests.
To substantiate this stance, a convincing %k crossing below on slow from above overbought territory is one more strong signal for intensified selling momentum.
Moreover, you can see whipsaws pattern on and price dips likely considering previous upswings.
On a broader perspective, the price declines likely to prolong in long run amid abrupt upswings as with crossover has remained well below zero levels.
On intraday speculative basis, since implied is very high on the eve of BoJ's , so smart way to approach this pair is to deploy the option tunnel using ATM puts is structured favouring above technical indication as a binary version of a conventional put spread, i.e. long delta puts with higher strikes while writing the lower strikes for above-mentioned targets on either side.
No surprise if it hits 128.602 levels near term or 139.3856 on north during intraday sessions sooner or later.We rely on and and as they pop up with overbought pressures thus far.
Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.55 on combined position with slightly negative theta is preferred on this execution.
Alternatively, investors can also stay short in mid-month for southwards targets.