FxWirePro: EUR/JPY breaks below 50-DMA, short rallies for 120.60

• EUR/JPY has shown a break below major 50-DMA support at 121.72 on Monday's trade.
   
• Short-term bias in the pair has turned bearish after break below 50-DMA. Price action has dipped into daily cloud.
   
• The pair has dropped to hit fresh 5-day lows at 121.30 after BoJ held rates and revision lower its longer-run inflation forecasts.
   
• We now see scope for test of 120.58 (23.6% Fib retrace of 109.20 to 124.09 rally and Jan 18 low).
   
• Violation there could see test of 118.70 (trendline support).
   
• Focus now on German retail sales data due to be reported ahead of the European open. 
   
• ECB Draghi’s speech, BOJ Kuroda’s presser, German jobs data, Eurozone CPI and GDP reports will also draw close attention.
   

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish              Oversold       
4H          Bearish              Neutral       
1D          Bearish              Neutral        
1W          Neutral              Neutral  


Support levels - 121, 120.58 (23.6% Fib retrace of 109.20 to 124.09 rally and Jan 18 low), 118.70 (Trendline and Dec 5 low)

Resistance levels - 121.65 (cloud top), 121.80 (50-DMA), 122 (5-DMA), 122.95 (Jan 20 high)

Recommendation: Good to go short on rallies around 121.45/60, SL: 122, TP: 121/ 120.60/ 120

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -41.0447 (Neutral), while Hourly JPY Spot Index was at 131.321 (Highly bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.