FxWirePro: EUR/JPY breaks below 23.6% Fib, eyes 200-DMA at 131.13

• EUR/JPY breaks below 23.6% Fib, is on track to test 200-DMA at 131.13.
   
• Technical indicators are bearish. RSI and Stochs are biased lower.
   
• Momentum studies are heavily bearish, but Stochs are in oversold levels so caution advised.
   
• The pair is capped below 110-EMA which is stiff resistance at 132.95.
   
• Violation at 200-DMA could see further weakness. Scope then for test of 38.2% Fib at 128.85.
   
• On the flipside, break above 110-EMA will see test of 20-DMA at 133.74. Breakout at 20-DMA invalidates bearish bias.   

Support levels - 131.13 (200-DMA), 130.60 (Sept 15 low), 130

Resistance levels - 132.01 (5-DMA), 132.95 (110-EMA), 133.74 (20-DMA)

Recommendation: Watch out for break below 200-DMA for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -77.7783 (Bearish), while Hourly JPY Spot Index was at 115.423 (Neutral) at 0820 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest