FxWirePro: EUR/JPY holds major trendline support at 119.65, bias lower, good to short rallies

• EUR attempting a tepid-bounce as markets await fresh cues from the sentiment on the European markets.
• German PPI above forecasts, focus now on German Bundesbank monthly report for further impetus amid a light, holiday-thinned trading session today.  
• After struggling at major trendline resistance for many weeks, EUR/JPY has resumed downside.
• Upside remains capped below weekly 5-SMA at 102.92. Bearish invalidation on close above.
• Bears eye weekly 50-SMA at 118.80, break below could see test of rising trendline at 116.50.
• Technicals on weekly charts are bearish. Stochs are biased lower, MACD shows bearish crossover. 

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      

Recommendation: Good to go short on rallies around 120.50, SL: 121.30, TP: 120/ 119.20/ 118.80

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 61.6539(Bullish), while Hourly JPY Spot Index was at 53.5915 (Neutral) at 0710 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.