The Euro has continued lower against the Japanese Yen
We are pleased to revisit the EUR/JPY binary options forex pair and assess what are the prospects for it in the coming trading sessions. This time, for the sake of providing our readers with a more detailed analysis we are aiming at looking at the bigger picture. This is why we will be using the daily chart for today's analysis of the market situation.
Euro gradually declining
The Euro has been gradually declining since the start of the week and anyone who has followed our signals has certainly made a buck here or there. Now having in mind what are the current issues with the economic picture across the Euro Zone and Japan, we believe that the current environment is likely to persist.
That is, we are of the opinion that any rallies above 138.00 are providing a good opportunity to buy daily puts. So while the pair has already materially declined today, we will be waiting for a rally to 138.50 initially to buy daily puts for tomorrow's expiry.
Also, if we see a pick up above 139.00 we would refrain from taking any other positions, but retaining the bias that rallies are more suitable for buying better puts, than reversing to buying calls strategy. Binary options on the EUR/JPY are very likely to remain profitable as prices continue to move lower.
The next key level is around 136.00 - if that is broken there is virtually not much stopping the price from going all the way down to the 134.00. While we have had a great run, it is also wrath paying attention to the support properties of 136.00. If the level holds, we could be in for a reversal soon, however we will talk about that when the time comes.
Until then any rally towards the middle of the 138-139.00 range can be used to establish daily put options for expiration in the coming days. For those of you who feel adventurous, you can also try to buy daily calls for today at current levels, but certainly - it is a very risky investment, beware!