FxWirePro: EUR/JPY rejected at 200-DMA, good to go short on break below 20-DMA

EUR/JPY chart on Trading View used for analysis

• EUR/JPY rejected at 200-DMA, with back-to-back Doji formation at highs.
   
• The pair is extending weakness and is trading 0.38% lower on the day at 129.115.
   
• Recovery attempts are capped at 110-EMA at 129.69, scope for weakness.
   
• Technical indicators are turning slightly bearish. Stochs are on verge of rollover from overbought levels.
   
• RSI is below 50 and baised lower. The pair is holding above 20-DMA support and break below will see further weakness.
   
• Scope for test of 61.8% Fib at 127.87. Bearish invalidation only on break above 200-DMA.

Support levels - 128.84 (20-DMA), 127.87 (61.8% Fib)

Resistance levels - 129.68 (110-EMA), 130.15 (200-DMA), 131

Recommendation: Good to go short on break below 20-DMA, SL: 129.70, TP: 128.85/ 127.35

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