- EUR/JPY holds strong support at 127.94, break below could see further weakness.
- The pair has given up gains above the 128 handle to currently trade at 127.94.
- Markets believe the ECB is closer than ever to the QE taper after Draghi's comments.
- Stochs are on verge of bearish rollover from overbought levels and MACD shows fading momentum.
- Major reversal in trend only below 126.25 (major trendline resistance turned support).
Support levels - 127.25 (5-DMA), 126.25 (major trendline resistance turned support), 126.0 (trendline)
Resistance levels - 128.16 (Apr 1 2016 high), 128.88 (61.8% Fib of 141.05 to 109.20 fall), 129
Recommendation: Good to go short on break below 127.60, SL: 128, TP: 127.15/ 127/ 126.75
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -1.18623 (Neutral), while Hourly JPY Spot Index was at -96.5364 (Bearish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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