FxWirePro: EUR/JPY Trade Idea

EUR/JPY chart on Trading View used for analysis

FxWirePro Currency Strength Index for EUR/JPY: Bias Bearish
FxWirePro's Hourly EUR Spot Index was at -67.2142 (Neutral)
FxWirePro's Hourly JPY Spot Index was at 147.337 (Bullish)

Technical Analysis: Bias Bearish
- Price action consolidates break below 200-DMA
- Momentum highly bearish, Stochs and RSI sharply lower
- MACD supports weakness with bearish crossover on signal line
- 55-EMA caps recovery attempts on the day at 130.19

Fundamental Views:
- Italian budget uncertainty to keep downside pressure on the EUR
- Bond yields in Italy continue to rise reflecting the concerns. 

Support levels - 129.88 (38.2% Fib), 129.44 (Lower BB), 128.87 (50% Fib)
Resistance levels - 130.19 (55-EMA), 130.89 (200-DMA), 131.12 (23.6% Fib)

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

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