- EUR/JPY trades 0.19% lower on the day at 129.24 at the time of writing.
- The pair is extending lower as euro remains dented after dovish ECB on Thursday.
- The pair has broken strong trendline support at 129.60, and is holding above daily cloud.
- Break below daily cloud will see further weakness. Scope then for test of 61.8% Fib at 127.43.
- On the flipside, 100-DMA is major resistance at 130.19. Break above will see retest of 200-DMA.
- We see any bearish invalidation only above 200-DMA.
Support levels - 129.05 (cloud top), 128.50 (July 4 low)
Resistance levels - 129.79 (5-DMA), 130.19 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-rejected-at-200-DMA-with-shooting-star-formation-break-below-100-DMA-opens-up-further-downside-1406704) has hit target.
Recommendation: Watch out for break into daily cloud for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -87.2987 (Slightly bearish), while Hourly JPY Spot Index was at 34.5101 (Neutral) at 1245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
