- EUR/JPY is extending range trade, price action remains capped below 61.8% Fib retrace at 134.28.
- Upside has been struggling to break above 61.8% Fib retrace of 109.205 to 149.787 rally at 134.28.
- We see scope for downside resumption on formation of 'Bearish Bat' pattern and bearish divergence on RSI and Stochs on weekly charts.
- The finds strong support at 100-DMA at 131.61, drag till 38.2% Fib at 124.70 likely on a decisive break below.
- On the flipside, breakout above 61.8% Fib will see upside resume. Test of 136.68 (Feb 2015 high) then likely.
Support levels - 132.64 (20-DMA), 131.61 (100-DMA), 129.85 (23.6% Fib retrace of 114.85 to 134.49 rally)
Resistance levels - 133.33 (5-DMA), 134, 134.28 (61.8% Fib retrace of 149.787 to 109.205 fall), 136.68 (Feb 2015 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -45.3229 (Neutral), while Hourly JPY Spot Index was at 85.5616 (Bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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