FxWirePro: EUR/JPY fails to extend trendline breakout, good to go short on break below 131.67 (20-DMA)

• EUR/JPY has failed to extend trendline breakout, has retraced back below major trendline.
   
• The single currency dented after the German elections revealed a sharp rise in support for the far-right AfD party.
   
• Technical studies on daily charts have turned bearish, RSI and Stochs have rolled over from overbought levels. MACD is on verge of bearish crossover on signal line.
   
• Also, the latest CFTC report shows EUR net longs were scaled back to the lowest level since late June during the week ended on September 19.
   
• The major now hovers around 132 levels, finds strong support by 20-DMA at 131.68.
   
• Bias lower, break below 20-DMA could see drag upto 50-DMA at 130.51.
   
• Immediate resistance is seen at 131.40 (trendline), break above finds next resistance at 5-DMA at 133.20.

Support levels - 131.77 (weekly 5-SMA), 131.68 (20-DMA), 131, 130.51 (50-DMA), 130.44 (200W SMA)

Resistance levels - 133, 133.20 (5-DMA), 134, 134.28 (61.8% Fib retrace of 149.787 to 109.205 fall), 135

Recommendation: Good to go short on break below 131.67 (20-DMA), SL: 132.40, TP: 130.50/ 130/

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -115.967 (Bearish), while Hourly JPY Spot Index was at 140.324 (Bullish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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