- EUR/JPY finds strong support on the downside at 120.51 (100-DMA), further weakness only on break below.
- The pair has held support by 20-DMA currently at 120.66 and edged higher to retake the 121 handle.
- Daily cloud offers stiff resistance on the upside along with 5-DMA at 121.37 and downside price action is in convergence with RSI.
- Stochs are biased lower after rollover from overbought zone and MACD is on the verge of a bearish crossover on signal line.
- Break below 100-DMA could see test of 120 levels, bearish invalidation on break above daily cloud.
Support levels - 121, 120.66 (20-DMA), 120.56 (50% Fib retrace of 118.23 to 122.88 rally), 120.51 (100-DMA)
Resistance levels - 121.39 (cloud top and 5-DMA), 122, 122.42 (Jan 13 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Neutral Neutral
1D Bearish Neutral
1W Neutral Neutral
Recommendation: Good to go short on rallies around 121.40, SL: 122, TP: 121/ 120.60/ 120.45/ 120
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 32.5868(Neutral), while Hourly JPY Spot Index was at 162.062 (Highly bullish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
