- EUR/JPY slips lower for 3rd straight session, hits fresh 2-week lows at 130.13.
- EUR depressed after top ECB policymakers this week said they would end the stimulus only after inflation shows a sustained rise towards the 2 percent inflation target.
- Technical indicators have turned bearish. RSI and Stochs have turned lower.
- MACD is well below zero level and we see bearish DMI crossover which adds to bearish bias.
- Downside finds strong support at 200W SMA at 129.49, we see further downside only on break below.
- On the flipside, immediate resistance is seen at 5-DMA at 131.19. Decisive breakout above 200-DMA at 131.63 negates bearish bias.
Support levels - 130, 129.91 (lower BB), 129.49 (200W SMA)
Resistance levels - 131.19 (5-DMA), 131.29 (20-DMA), 131.63 (200-DMA)
Recommendation: Watch out for break below 200W SMA for weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -23.4338 (Neutral), while Hourly JPY Spot Index was at 25.2143 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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