- EUR/JPY extends downside after bearish gap down open. Intraday bias bearish.
- The pair is down for 4th successive session continues downside after 'Bearish Shark' pattern formed on 4-hourly charts.
- Technical studies are bearish, Stochs have rolled over from overbought levels and RSI is biased lower.
- Yen remains bid as risk-off persists triggered by the weekend’s hydrogen bomb test conducted by North Korea.
- The pair is on track to test 50-DMA at 129.57. Violation there could see further drag.
- The major has been struggling at weekly 200-SMA at 130.50 and close above cloud see bearish invalidation.
Support levels - 130, 129.65 (20-DMA), 129.57 (50-DMA), 128.05 (Aug 11 low)
Resistance levels - 130.91 (5-DMA), 131, 131.70 (Aug 30 high), 131.85 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-forms-Bearish-Shark-pattern-scope-for-downside-stay-short-below-5-DMA-at-13102-878975) has hit TP1&2.
Recommendation: Bias lower. Stay short for 129.70/ 129.60, 129
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