- EUR/JPY rejected at weekly 200-SMA at 130.61, edges lower to slip below 129 handle.
- We could see further upside only on break above weekly 200-SMA.
- Momentum fading on daily charts, Stochs have rolled over from overbought levels and MACD is on verge of bearish crossover.
- Back-to-back Doji formation seen on daily charts which suggest consolidation.
- 5-DMA has turned and is capping minor recovery attempts in the pair. We see scope for drag upto 127.79 20-DMA.
- On the flipside, break above weekly 200-SMA could see upside upto 134.23 (78.6% Fib).
Support levels - 128, 127.79 (20-DMA), 127.01 (23.6% Fib retrace of 114.85 to 130.767 rally)
Resistance levels - 129.36 (5-DMA), 130.61 (weekly 200-SMA), 130.76 (July 11 high)
Recommendation: Good to go short on rallies around 129/129.10, SL: 129.60, TP: 128.50/ 128/ 127.80
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