FxWirePro: EUR/JPY breaks below 50-DMA at 128.32, good to go short on rallies

• EUR/JPY is extending downside after failure at weekly 200-SMA, bias lower.
   
• The pair has closed in the red for 2 successive weeks and has opened the week lower.
   
• 50-DMA support at 128.32 has been breached, the pair is currently trading at 127.94, just below the 128 handle.
   
• Yen is likely to hold its safe haven appeal as geopolitical concern regarding North Korea resurface.
   
• Technicals on weekly charts are turning bearish. Stochs are showing a rollover from overbought levels.
   
• RSI is biased lower and MACD is on verge of bearish crossover on signal line.
   
• Bearish divergence from price action on Stochs and RSI on daily charts supports downside.
   
• Retrace into channel top at 127.40 will raise scope for test of channel base. Upside seen only on decisive break above weekly 200-SMA.

Support levels - 127.40 (channel top), 127, 124.60 (trendline)

Resistance levels - 128.32 (50-DMA), 128.83 (5-DMA), 129, 129.71 (20-DMA)

Recommendation: Good to go short on rallies around 128.10/128.20, SL: 128.85, TP: 127.60/ 127.40/ 127.

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