- EUR/JPY finds strong support at 100-DMA at 131.55, we see weakness only on break below.
- Upside has been struggling to break above 61.8% Fib retrace of 109.205 to 149.787 rally at 134.28.
- Further the pair has formed a 'Bearish Bat' pattern on the weekly charts which raises scope for downside.
- Bearish divergence on RSI and Stochastics also supports bias lower. Drag till 38.2% Fib at 124.70 likely on a decisive break below 100-DMA.
- On the flipside, breakout above 61.8% Fib will see upside resume. Test of 136.68 (Feb 2015 high) then likely.
Support levels - 133.16 (5-DMA), 132.57 (20-DMA), 131.54 (100-DMA)
Resistance levels - 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 47.7487 (Neutral), while Hourly JPY Spot Index was at -99.5391 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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