FxWirePro: EUR/JPY forms 'Bearish Shark' pattern, scope for downside, stay short below 5-DMA at 131.02

• EUR/JPY has formed 'Bearish Shark' pattern on 4-hourly charts, scope for further downside.
   
• We notice bearish divergence on RSI and Stochs which adds to the bearish bias.
   
• The pair is trading in a narrow range, with day's high at 131.18 and low at 130.87.
   
• Close below 5-DMA at 131.01 finds next immediate supports at 130.51 (weekly 200-SMA) and then at 130.72 (23.6% Fib retrace of 127.56 to 131.70).
   
• 20-DMA at 129.66 is major support and violation there could see test of trendline support at 128.75.
   
• The major has been struggling at weekly 200-SMA at 130.51 and close above cloud see bearish invalidation.

Support levels - 130, 129.66 (20-DMA), 128.75 (rising trendline)  

Resistance levels - 131.70 (Aug 30 high, 132.02 (Feb 2016 high), 132.28 (Jan 2016 high)

Recommendation: Good to go short on close below 5-DMA at 131.02, SL: 131.70, TP: 130.70/ 130/ 129.70

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -68.0715 (Neutral), while Hourly JPY Spot Index was at -114.755 (Bearish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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