FxWirePro: EUR/JPY extends downside in 'Bearish Shark' pattern, bias lower, stay short

• EUR/JPY down 0.17% on the day, extends downside in continuation of 'Bearish Shark' pattern.
   
• Technical studies are bearish, Stochs have rolled over from overbought levels and RSI is biased lower.
   
• N.Korean headlines trigger fresh wave of risk-aversion across the financial markets.
   
• Reuters news cited that N.Korea was spotted moving ICBM-grade rocket towards west coast and possible launch is expected before Saturday.
   
• 50-DMA at 129.63 is immediate support. Violation there could see further drag.
   
• The major has been struggling at weekly 200-SMA at 130.50 and close above cloud see bearish invalidation.

Support levels - 130, 129.69 (20-DMA), 129.63 (50-DMA), 128.05 (Aug 11 low)

Resistance levels - 130.65 (5-DMA), 131, 131.70 (Aug 30 high), 131.85 (trendline)

Recommendation: Bias lower. Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 7.01826 (Neutral), while Hourly JPY Spot Index was at 17.4285 (Neutral) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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