FxWirePro: EUR/JPY rejected at session highs, good to go short on rallies

• Financial markets will remain closed across Europe, major risk-off which is support safe-haven yen demand is driving price action in the pair.
   
• Risk-off dominates amid tensions in the Korean peninsula and as US bombing Afghanistan continue to spook markets.  
   
• EUR/JPY edges lower from session highs at 116, bias heavily bearish.
   
• The pair finds strong trendline support at 115.70, break below could see drag upto 114.89.
   
• Momentum studies are heavily bearish, but RSI and Stochs are deeply in oversold territory so some caution advised.
   
• Weekly charts are also heavily bearish and so we would use upticks as opportunity to go short.

Support levels - 115, 114.89 (61.8% Fib retrace of 109.205 to 124.094 rally), 114.01 (Nov 3rd 2016 low)

Resistance levels - 116.28 (5-DMA), 116.65 (50% Fib), 117.74 (200-DMA)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Oversold        
1D          Bearish               Oversold        
1W         Bearish               Neutral      

Recommendation: Good to go short on rallies around 115.75/80, SL: 116.30, TP: 115.10/ 114.90/ 114

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -68.1476(Bearish), while Hourly JPY Spot Index was at 115.363 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.