Shooting stars at 106.869 and 106.813 levels.
Long-legged at 106.814 levels.
candle at 106.400 levels.
The price slides after these patterns and remained well below 7DMAs despite today’s rallies. Ever since the shooting stars have occurred bulls are struggling for the healthy momentum even though mild upswings are visible today.
Both leading and lagging oscillators are indecisive but slightly signal weakness.
While on the broader perspective, ever since the failure swings at stiff resistance at 114.721 levels, the price slid below 7EMA, the candle with the big real body has taken the price dips below EMAs.
Consequently, with prevailing intensified momentum, the bears have managed to breach below long lasting range and also breaches 38.2% Fibonacci level.
Both leading and lagging indicators on this timeframe as well signal weakness.
Strong was observed at 107.272 areas (i.e. 38.2% ), we had seen the strong at that juncture couple of times in the recent past which has broken that strong decisively.
Thereby, you could observe that the momentum in the prevailing swings is building up.
Both & curves are converging downwards on monthly and signaling selling pressures on the major terms.
Trading tips: Contemplating above technical rationale, we advocate buying tunnel spreads with upper strikes at 106.876 and lower strikes at 106.376, this strategy is likely to add magnifying effects to the yields as long as the underlying spot FX keeps dipping below but remain above lower strikes on expiration.
Alternatively, one can short contracts of mid-month tenors with a view to arresting further downside risks.
Currency Strength Index: FxWirePro's hourly USD spot index has shown 71 (which is ), while hourly JPY spot index was at -154 ( ) while articulating at 06:29 GMT .