FxWirePro: EUR/JPY recovery capped at 5-DMA, minor upside likely on break above

EUR/JPY chart on Trading View used for analysis

• EUR/JPY edges lower from session highs at 130.50, trades at 130.25 at the time of writing.
   
• Technical analysis supports bearish bias. Price action consolidates break below 200-DMA.
   
• Momentum highly bearish, Stochs and RSI are sharply lower and MACD supports weakness with bearish crossover on signal line.
   
• Recovery attempts on the day capped at 5-DMA which is sharply downward sloping.
   
• Italian budget uncertainty to keep downside pressure on the single currency. Scope for dip till daily cloud.

Support levels - 129.88 (38.2% Fib), 129.44 (Lower BB), 128.87 (50% Fib)

Resistance levels - 130.41 (5-DMA), 130.86 (200-DMA), 131.12 (23.6% Fib)

Recommendation: Good to go short on rallies, SL: 130.75, TP: 129.45/ 128/ 128.85 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1440202) is progressing well.

Recommendation: Hold for targets.