FxWirePro: EUR/JPY finds major support at 130.70, good to go short on break below

• EUR/JPY was rejected at 20W SMA. The pair is edging lower from 10-week highs of 133.48.
   
• We see formation of Gravestone Doji at highs which adds to the bearish bias.
   
• The pair is trading in a rising channel and price is hovering around channel base at 130.70.
   
• Technical indicators on weekly charts are bearish. RSI weak below 50 levels and Stochs biased lower.
   
• Breach at channel base support at 130.70 will accentuate weakness. Scope then for test of 38.2% Fib at 126.69.
   
• On the flipside we see major resistance at 20W SMA at 132.81, bearish invalidation only on break above.

Support levels - 130.70 (channel base), 128.94 (March low)

Resistance levels - 131.67 (5-DMA), 132.81 (20W SMA)

Recommendation: Good to stay short below 130.70, SL: 131.85, TP: 130/ 129.35/ 128.95

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -86.1126 (Bearish), while Hourly JPY Spot Index was at 146.073 (Bullish) at 1130 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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