Although prices are showing little strength from last couple of days major downtrend seems intact.
Current price bounce has taken support at 84.578 levels, intraday bulls seem continue to extend their rallies.
RSI has convincingly been converging to these price bounces near 52 levels (Currently, RSI at 52.5365) but this signal is adverse on monthly charts.
But slow stochastic is stating buying momentum and indecisiveness as we observed no clear traces of %K crossover at 20 levels on monthly terms that would mean buying pressure is yet generate at this point of time.
On a broader perspectives, price on monthly drop below 86.939 decisively has been serving strong bear trend with robust volumes.
Most notably, you can see 21EMA has just crossed over 7EMA, hence, trend is likely to persist.
Since, the upswings could not manage to hold minor resistance at 86.378, divergence between previous upswings and RSI signals long term bearish risks
We could foresee weakness in CADJPY when we consider the intermediate and long term trend of this pair.
Contemplating intraday bullish sentiments, we recommend on pure speculation basis buying one touch binary calls in order to extract maximum leverage for extended profitability, for targets at 85.132 levels. But in medium terms we could even foresee spot targets at 84.348 and below.
One can give leveraging touch to your returns expectation if underlying pair keeps dipping by employing At-The-Money binary delta calls. But do remember these are exclusively for speculative basis.
The material has been provided by InstaForex Company – www.instaforex.com