- EUR/JPY finds support from rebound staged by USD/JPY, halts back-to-back sessions of losses.
- The pair edges higher from multi-week lows at 120.54 (on Jan 17th) to currently hover around handle.
- Price action has slipped below 50-DMA, we see scope for test of 200-DMA at 118 levels.
- Upside capped by 5-DMA at 121.21, slight upside only on decisive close above.
- Focus now on remains the inflation figures due on the cards from Germany, Eurozone today.
- The key event of the week for the is likely to be the European Central Bank on Thursday.
- The following press conference from President Mario Draghi will be closely watched.
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bearish Neutral
1W Bearish Neutral
Support levels - 120.58 (23.6% Fib 109.20 to 124.09 rally), 120, 119.77 (cloud top)
Resistance levels - 121.24 (5-DMA), 122.41 (Jan 13 high), 123, 123.72 (Jan 9 high)
Recommendation: Good to go short on rallies around 121.10/20, SL: 122, TP: 120.60/ 120/ 119.75
