FxWirePro: EUR/JPY extends drag below 200-DMA, bias lower, stay short

• EUR/JPY has broken below 200-DMA at 117.69 which is now major resistance on the upside.
   
• With just two weeks to go for French election, the EUR remains under pressure.
   
• Focus remains on the OAT-Bund yield spread ahead of the French elections.
   
• Data wise we have Eurozone industrial production data and German Zew survey indices which may not have much influence.
   
• IMM data for the week ended 04 April showed leveraged funds’ net short JPY positions continued to fall for the second consecutive week.
   
• Technical studies are bearish, the single currency remains weak, after Draghi squashed rate rise hopes last week. 
   
• Support levels - 117, 116.65 (50% Fib retrace of 109.20 to 124.09 rally), 116.25 (Nov 17 low and trendline)
   
• Resistance levels - 117.69 (200-DMA), 118.40 (38.2% Fib retrace of 109.20 to 124.09 rally), 118.79 (Apr 5 high)
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Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-hovers-around-200-DMA-good-to-go-short-on-close-below-11750-634780) is progressing well. 

Recommendation: Hold for targets.