FxWirePro: EUR/JPY holds above 100-DMA, break below will accentuate weakness

Widening European bond yields in wake of political uncertainty in the euro area likely to keep the single currency subdued.

Latest OpinionWay poll show first-round support for Le Pen rising 1% point to 27%.

Also, renewed Greece default worries after the Euro zone finance ministers failed to reach an agreement on Monday weigh.

Focus remains on the Euro area flash manufacturing PMI reports due on the cards later in the European session.

Technically, bearish bias in the pair intact. Bears eye weekly 50-SMA at 118.80, break below could see test of rising trendline at 116.50.

Support levels - 119.21 (100-DMA), 118.80 (Weekly 50-SMA), 117.73 (200-DMA), 116.50 (trendline)

Resistance levels - 120.50 (5-DMA), 121 (20-DMA & weekly 5-SMA), 122.50 (cloud top)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Neutral               Neutral       
1D          Neutral               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-holds-major-trendline-support-at-11965-bias-lower-good-to-short-rallies-547650) is progressing well.

Recommendation: We recommend holding for downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -65.7588(Bearish), while Hourly JPY Spot Index was at 52.1828 (Slightly bullish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.