FxWirePro: EUR/JPY holds major trendline support at 119.45, good to short break below

• EUR/JPY is holding strong support at major trendline support at 119.45.
   
• Upside finds stiff resistance by 5-DMA at 120.05, we see reversal only on close above.
   
• Technical studies remain highly bearish, we see scope for further downside.
   
• Yen supported in the Asian session amid risk-aversion. Recovery lacks traction, price action rejected at 5-DMA.
   
• Treasury yields and equities sold-off after Friday’s Healthcare bill failed to clear the House vote.
   
• Break below trendline support at 119.35 will see resumption of downside.

Support levels - 119.45 (trendline), 119, 118.70 (Dec 5, 2016 low)

Resistance levels - 120.06 (5-DMA), 120.58 (23.6% Fib retrace of 109.20 to 124.09 rally), 120.82 (cloud base)

TIME  TREND INDEX  OB/OS INDEX    

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

Recommendation: Good to go short on break below trendline support at 119.45 target 119/ 118.40/ 118

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 60.8179(Slightly bullish), while Hourly JPY Spot Index was at 100.539 (Bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.