- EUR/JPY is trading a narrow range on the day, capped below 5-DMA on the upside.
- JPY remains bid as markets witnessed a slight turnaround in risk condition amid a renewed uptick in treasury yields and Asian equities.
- Caution to remain ahead of Comey’s testimony and Trump’s Budget release next week.
- German PPI beat forecasts, but EUR remains muted, focus now on Eurozone Current Account data.
- EUR/JPY has held 20-DMA support at 122.97, break below will see drag lower.
- Bearish 'Anti Gartley' pattern on daily charts, adds downside bias.
- Stochs are biased lower and RSI flat-lined after rollover from overbought levels.
Support levels - 122.97 (20-DMA), 122.25 (23.6% Fib of 114.85 to 124.53 rise), 122
Resistance levels - 124.28 (5-DMA), 124.54 (May 9 high), 124.65 (channel top & May 2016 high)
Call update: We had recommended a short call (http://www.econotimes.com/FxWirePro-5-DMA-caps-upside-in-EUR-JPY-good-to-go-short-on-rallies-709753).
Recommendation: Stay short. Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 3.10099 (Neutral), while Hourly JPY Spot Index was at 83.9531 (Bullish) at 0950 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
