FxWirePro: EUR/JPY breaks below 110-EMA, scope for further downside, stay short

• EUR/JPY has shown a decisive break below 110-EMA at 133.06, scope for further weakness.
   
• The major has slipped below 133 handle and is currently trading at 132.61, down 0.67% on the day.
   
• Technical indicators support weakness. Price action finds stiff resistance at 100-DMA on daily charts.
   
• MACD has shown a bearish crossover and RSI biased south. We see -ve DMI dominance on daily charts and ADX rising.
   
• On 1H charts, price has been rejected multiple times at 55-EMA. Stochs have shown a bearish rollover from overbought levels.

Support levels - 132.15 (23.6% Fib 114.851 to 137.506 rally), 131.16 (Nov 20 low), 130.81 (200-DMA)

Resistance levels - 133.58 (100-DMA), 133.40 (1H 55-EMA), 133.85 (1H 110-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1144897) has hit TP1.

Recommendation: Bias lower, stay short

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