FxWirePro: Cloud caps upside in EUR/JPY, good to go short on rallies

• EUR/JPY edges higher from session lows at 120.85, has reclaimed 50-DMA at 121.
   
• Daily cloud offers stiff resistance on the upside, intraday bias remains lower.
   
• RSI nicely converging with price action, bearish invalidation only on close above daily cloud.
   
• Stochs are biased lower after rollover from overbought zone and MACD is on the verge of a bearish crossover on signal line.
   
• Pair is on track to test 100-DMA at 120.45, violation there could see further downside upto 120 levels.

Support levels - 121 (50-DMA), 120.56 (50% Fib retrace of 118.23 to 122.88 rally), 120.45 (100-DMA) 

Resistance levels - 121.40 (cloud top), 121.53 (5-DMA), 122, 122.42 (Jan 13 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Neutral                Neutral       
1D          Bearish               Neutral        
1W         Neutral                Neutral      

Recommendation: Good to go short on rallies around 121.35/40, SL: 122, TP: 121/ 120.60/ 120.45/ 120

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 0.312492(Neutral), while Hourly JPY Spot Index was at 9.37847 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.