- EUR/JPY edges lower from fresh 5-month highs at 130.76 hit on Tuesday's trade.
- Upside finds stiff resistance at weekly 200-SMA at 130.65, further gains only on break above.
- Momentum indicators on daily charts are at overbought levels which suggests possible correction.
- The pair is currently hovering around minor support by 5-DMA at 129.95. Break below could see drag upto 129.14 (1H 200-SMA).
- On the flipside, break above weekly 200-SMA could see upside upto 134.23 (78.6% Fib).
Support levels - 129.16 (1H 200-SMA), 129, 128 (July 6 low)
Resistance levels - 130.65 (weekly 200-SMA), 131.51 (131.66 (Feb 4 2016 high), 132.28 (Jan 29 2016 high), 134.23 (78.6% Fib retrace of 141.05 to 109.20 fall)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Channel-breakout-on-EUR-JPY-weekly-200-SMA-at-13065-next-bull-target-785971) has hit all targets.
Recommendation: We prefer to wait for break above weekly 200-SMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 117.23 (Bullish), while Hourly JPY Spot Index was at 26.1331 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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