FxWirePro: EUR/JPY dips below daily cloud, eyes 38.2% Fib at 128.85, stay short

• EUR/JPY is extending weakness below daily cloud, extends falling spree for 8th straight session.
   
• The pair is trading in a narrow range and technical indicators are biased lower.
   
• The pair was rejected at 20W SMA and is edging lower from 10-week highs of 133.48.
   
• We see formation of Gravestone Doji at highs which adds to the bearish bias.
   
• Price has broken below channel base at 130.70 on the weekly charts.
   
• Technical indicators on weekly charts are bearish. RSI weak below 50 levels and Stochs biased lower.
   
• Next major bear target lies at 38.2% Fib at 128.85. On the flipside we see major resistance at 20W SMA at 132.81, bearish invalidation only on break above.

Support levels - 130,  128.94 (March low), 128.85 (38.2% Fib)

Resistance levels - 130.95 (5-DMA), 131.36 (50-DMA), 132.81 (20W SMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-finds-major-support-at-13070-good-to-go-short-on-break-below-1290454) has hit TP1.

Recommendation: Bias lower. Hold for further weakness.

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