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FxWirePro: EUR/JPY struggles to extend bullish gap open, upside capped at 5-DMA (128.58)

EUR/JPY has slipped lower from session highs at 128.53 to currently trade at 128.02 levels. The major opened with a bullish gap, but failed to extend momentum higher. Upside was capped below 5-DMA at 128.58. Technical an…

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FxWirePro: EUR/JPY struggles to extend bullish gap open, upside capped at 5-DMA (128.58)
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  • EUR/JPY has slipped lower from session highs at 128.53 to currently trade at 128.02 levels.
     
  • The major opened with a bullish gap, but failed to extend momentum higher. Upside was capped below 5-DMA at 128.58. 
     
  • Technical analysis shows bearish bias. The pair has broken below 'Symmetric Triangle' pattern.
     
  • Momentum indicators bearish, trend indicators support downside and we also see -ve DMI dominance which adds to the bearish bias.
     
  • Price is currently extending weakness below 38.2% Fib and is on track to test 50% Fib at 126.17.

Support levels - 127.56 (Aug 18 low), 127, 126.17 (50% Fib)

Resistance levels - 128, 128.58 (5-DMA), 129.97 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1332757) has almost hit TP2.

Recommendation: Book partial profits at lows, hold for further downside.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
 

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