- EUR/JPY upside stalled shy of 5-DMA at 118.56, the pair has retreated from session tops to currently trade around 118.20 region.
- A downward revision of the final Euro-zone services PMI prints for March further weighed on the shared currency.
- The pair could accelerate slide on a sustained break through 117.50 support (major trendline).
- Downside then finds little support till 116.40-35 area.
- Hammer formation on the downtrend does suggest some consolidation before the next leg lower.
Support levels - 118, 117.63 (200-DMA), 117.50 (trendline), 117.42 (April 4 low)
Resistance levels - 118.40 (38.2% Fib retrace of 109.20 to 124.09 rally), 118.57 (5-DMA), 119, 119.31 (1H 100-SMA)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bullish Neutral
1D Bearish Neutral
1W Bearish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-finds-stiff-resistance-at-12080-intraday-bias-bearish-good-to-stay-short-614544) has achieved all targets.
Recommendation: Good to go short on break below 117.50, SL: 118.40, TP: 116.65/ 116.25/ 116
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 0.900424 (Bearish), while Hourly JPY Spot Index was at 126.741 (Bullish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
