Buying Put Options Near 125.90 Still Preferable In USDJPY
Aug, 06th 03:54
The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) yesterday, increasing the price of USDJPY to more than 124.50 ahead of some key economic events. The technical bias remains bullish due to a Higher Low (HL) in the ongoing wave on daily chart.
The USD/JPY pair is being traded at a fresh weekly high of 124.70, still shy from the top of its latest range around 125.89. The USD/JPY has been trading uneventfully since mid last week, and for the most indifferent to macroeconomic data, something quite usual in the preceding days of the release of the US Nonfarm Payroll report.
Yesterday Bank of Japan’s Kuroda said that the Central Bank sees no need for further monetary stimulus at the moment as they expect inflation to meet its target by the first quarter of 2016, which gave some limited support to the JPY that anyway was unable to advance firmly against its American rival.
Talking about short term, the one-hour chart shows that the price is finally advancing above a bullish 100 SMA after being stuck around it since the week started, whilst the technical indicators head north above their mid-lines, supporting a test of the mentioned resistance level.
In the 4 hours chart, the technical picture is also bullish, as the technical indicators have managed to recover above their mid-lines and head north in positive territory, although cautious is advice, as the pair will have a hard time breaking higher before Friday.
Binary Options Trade Idea
Considering the overall technical and fundamental outlook, buying the put options near the swing high of the last major upside rally could be a good strategy in short to medium term.