FxWirePro: EUR/JPY on track to test 50-DMA at 129.57, stay short

• 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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