FxWirePro: EUR/JPY finds strong support at 200W SMA at 129.19, further weakness only on break below

• EUR/JPY edges higher from 7-week lows at 129.23, hovers below 130 handle.
   
• The pair finds strong support at 200W SMA at 129.19, we see further weakness only on break below.
   
• Price action has broken into weekly cloud and breach at 200W SMA will raise scope for test of  38.2% Fib at 128.85.
   
• Technical indicators on weekly charts are bearish. RSI weak below 50 levels and Stochs biased lower.
   
• Price has broken below 1W 55-EMA at 130.10, and upside remains capped below 1W 20-SMA.
   
• Next major bear target lies at 38.2% Fib at 128.85 ahead of 128.43 (1W 110-EMA).
   
• On the flipside we see major resistance at 20W SMA at 132.56, bearish invalidation only on break above.

Support levels - 129.19 (200W SMA),  128.94 (March low), 128.85 (38.2% Fib)

Resistance levels - 130.13 (5-DMA), 131.31 (50-DMA), 132.56 (20W SMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-finds-major-support-at-13070-good-to-go-short-on-break-below-1290454) has hit TP1/2.

Recommendation: Book partial profits at lows. Watch for break below 200W SMA for further weakness.

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