EUR/JPY Chartpack - Technicals & Trade Setup : FxWirePro | April 4, 2018

Chart and candlestick patterns formed- hammer patterns occurred at 130.246 and 130.182 levels while hanging man patterns have occurred at 130.797 and 130.831 levels on the 4H chart, and at 135.394 levels on monthly plotting. Shooting star at 129.366 levels on monthly terms.

Hammer which is bullish in nature have evidenced the rallies but bulls struggle for momentum for now despite the interim rallies as hanging man counter-rallies hovering at DMAs.

The stern bearish engulfing pattern signals weakness, while both leading indicators seem to be indecisive. Stiff resistance is seen at 130.933 levels.

On a broader perspective, although bulls broke-out above 61.8% Fibonacci retracements from the lows of 109.351 but couldn't sustain, hanging man , gravestone doji & resembling bearish engulfing patterns occur at peaks to plummet prices below EMAs again.

Both leading signal OB pressures, while the lagging indicators also signaling downswings to prolong further. Consequently, the current prices are back near 50% Fibonacci levels.

One can easily make out from the RSI , fast stochastic curves and MACD , no traces of bullish indications so far, instead, these technical indicators signal intensified selling interests.

The major supports are observed at 129.828 and 127.779 levels.

Trend indicators: MACD on monthly terms has still been showing bearish crossover that indicates the further downswings.

Trade tips: On trading perspective, it is advisable to buy tunnel spreads that are binary version debit put spreads using upper strikes at 130.933 and lower strikes at 130.550 levels, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps dipping but remains above lower strike on expiration.

Alternatively, deploy shorts in futures contracts of mid-month tenors with a view to arresting bearish risks upto 129.828 or below levels.

Currency Strength Index: FxWirePro's hourly EUR spot index is flashing at -13 levels (which is neutral), while hourly JPY spot index was at -63 ( bearish ) while articulating at 06:37