FxWirePro: EUR/JPY trades below strong support at 129.55, scope for further downside

• EUR/JPY extends weakness below 200-DMA, trades 0.20% lower on the day at 129.28 levels.
   
• The pair has broken strong trendline support at 129.55, raises scope for further downside.
   
• RSI is showing weakness below 50 levels and Stochs are biased lower.
   
• MACD is well below zero levels and we see -ve DMI dominance which adds downside pressure.
   
• Price action currently finds minor support at 38.2% Fib at 128.85, break below will accentuate weakness.
   
• On the flipside, break above immediate resistance at 5-DMA could see retrace till 20-DMA at 130.83.
   
• We see bearish invalidation only on breakout above 200-DMA.

Support levels - 129, 128.85 (38.2% Fib), 127.56 (Aug 18 low)

Resistance levels - 130.17 (5-DMA), 130.83 (20-DMA), 131

Recommendation: Good to go short on rallies around 129.30/40, SL: 130.20, TP: 129/ 128.85/ 128.

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