- 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.
