FxWirePro: EUR/JPY capped at 110-EMA, break above required for further upside

EUR/JPY chart - Trading View 

Technical Analysis: Bias Neutral

- 'Spinning Top' formation on the daily candle at the time of writing

- Recovery attempts from multi-week lows at 121.61 capped at 110-EMA

- Stochs are at oversold levels which could cause some pull backs

- RSI is now biased north, but remains below the 50 mark

- Downside has paused above 200-DMA support and price action has edged above 5-DMA

Support levels - 122.23 (38.2% Fib), 122.12 (5-DMA), 121.16 (200-DMA)

Resistance levels - 122.79 (200H MA), 123.04 (110-EMA), 124.08 (23.6% Fib)

Summary: Volatility is likely to remain high as it becomes apparent there is unlikely to be a clear cut outcome in the U.S. elections. Further, Euro area October services PMIs paint an even bleaker economic outlook than was the case in September. In Spain services activity slipped back to 41.4 from 42.4, while in Italy the picture worsened to 46.7, while France and Germany slipped back to 46.5 and 49.5 respectively. Downside pressure remains for the pair.