Binary EUR/JPY continues drifting lower. The uncertainty of the binary traders about the effect of the measures taken by the European institutions is pushing the binary currency pair deep in the red. The binary traders are buying binary put options so far. The pressure is huge but the longer the binary asset falls, the bigger the opportunity to reverse dramatically in order to take binary option traders` money.
Binary options are facing a significant support reaching 97.00. It is on the screen since January and it is possible to stay intact in the near future. The development of the underlying instrument is following specific Fibonacci levels. The wave from 95.50 to 101.50 has been retraced 50% at 98.60. The binary options have tested several times the aforementioned level before finding enough strength to push higher. The next wave from 101.50 to 98.50 has been retraced 88.6% at 101.25. The subsequent wave from 98.50 to 101.25 has been extended 141.40% at 97.00.
This is the current value of the binary currency pair. It is possible that the binary options fall some 20 pips more just to reach 96.85. It represents 78.6% of retracement from the first wave on the screen. It is a very crucial zone between 97.00 and 96.85. If the binary instrument breaks below, it could reach 96.40. All waves form a typical bullish model called Bullish Bat.
Useful strategy is to start buying binary call options.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.