FxWirePro: EUR/JPY hovers around 88.6% Fib, intraday bias bearish

EUR/JPY chart on Trading View used for analysis

• EUR/JPY  has paused downside at 88.6% Fib at 125.84, break below will see further weakness.
   
• The pair is extending weakness after break below major trendline support at 127.90.
   
• Momentum indicators are at oversold levels and see price has edged below lower Bollinger Band.
   
• Some bounce off current levels likely. Break below 88.6% Fib could see test of 5-DMA at 126.70.
   
• Break above 5-DMA could see extension of upside. Next major resistance above 5-DMA lies at 21-EMA at 127.76.
   
• On the downside, break below 88.6% Fib finds next major support at 124.90 (Aug 15 low).

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-finds-major-trendline-support-at-12785-good-to-go-short-on-break-below-1473885) has hit all targets.

Recommendation: Watchout for break below 88.6% Fib for further downside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.