- Euro finds support from Merkel’s big win in Sunday's regional elections in Germany.
- Mixed market sentiment amid higher oil and negative equity markets also lend support to the funding currency EUR.
- EUR/JPY has gained on the day, edges above 124 handle. Stiff resistance at channel top at 124.65.
- Technical indicators on daily charts are at overbought levels and bearish 'Anti Gartley' pattern on daily charts, adds downside bias.
- Confirmation on rollover of RSI and Stochs along with 'Death Cross' completion on hourlies would reinforce bearish bias.
Support levels - 123.96 (5-DMA), 123, 122.59 (May 4 low), 122.25 (23.6% Fib of 114.85 to 124.53 rise)
Resistance levels - 124.54 (May 9 high), 124.65 (channel top & May 2016 high), 125
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 47.7889 (Neutral), while Hourly JPY Spot Index was at 27.4009 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
