- EUR/JPY has broken major trendline support at 132.40, bias lower.
- Momentum studies are bearish, RSI below 50, Stochs biased lower.
- We see bearish divergence on RSI and Stochs which raises scope for downside.
- Technical indicators on weekly charts are also turning bearish. RSI and Stochs have rolled over from overbought levels.
- We see scope for test of 50-DMA at 131.22. Violation there could see further downside.
- On the flipside, retrace above 5-DMA at 132.53 could negate bearish bias.
Support levels - 131.22 (50-DMA), 131, 129.79 (23.6% Fib retrace of 114.85 to 134.405 rally)
Resistance levels - 132.53 (5-DMA), 133, 133.49 (Oct 11 high)
Recommendation: Good to go short on rallies around 132/132.10, SL: 132.60, TP: 131.25/ 131/ 129.80
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -132.394 (Bullish), while Hourly JPY Spot Index was at 47.9895 (Neutral) at 1020 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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