FxWirePro: EUR/JPY breaks trendline support at 123.75, eyes 61.8% Fib at 122.14

EUR/JPY chart - Trading View 

• EUR/JPY extends gap down open, trades 0.36% lower at 123.98 at 0600 GMT.
   
• The pair has broken strong trendline support at 123.75, bias bearish.
   
• Persisting risk-off fuelled by Trump"s tariffs hike threat keeps demand for safe-haven yen.
   
• Japan will remain on holidays this Monday, and thin markets could lead to unexpected moves across the board.
   
• Technical indicators remain bearish. Volatility is expanding as evidenced by widening Bollinger Bands.
   
• Stochs and RSI are sharply lower and -ve DMI dominance adds to bearish bias.
   
• Scope for test of 61.8% Fib at 122.14. Failure to close below 124 will see retrace upto 5-DMA.

Support levels - 123.16 (50% Fib), 122.14 (61.8% Fib), 122

Resistance levels - 123.75 (trendline), 124.18 (38.2% Fib), 124.50 (5-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.