FxWirePro

EUR/JPY short setup

Short
FxWirePro Updated   
FX:EURJPY   Euro / Japanese Yen
EUR/JPY holds major trendline support at 119.65, bias lower, good to short rallies.

EUR attempting a tepid-bounce as markets await fresh cues from the sentiment on the European markets.

German PPI above forecasts, focus now on German Bundesbank monthly report for further impetus amid a light, holiday-thinned trading session today.

After struggling at major trendline resistance for many weeks, EUR/JPY has resumed downside.

Upside remains capped below weekly 5-SMA at 102.92. Bearish invalidation on close above.

Bears eye weekly 50-SMA at 118.80, break below could see test of rising trendline at 116.50.

Technicals on weekly charts are bearish. Stochs are biased lower, MACD shows bearish crossover.

Support levels - 119.21 (100-DMA), 118.80 (Weekly 50-SMA), 117.73 (200-DMA), 116.50 (trendline)

Resistance levels - 120.50 (5-DMA), 121 (20-DMA & weekly 5-SMA), 122.50 (cloud top)

Good to go short on rallies around 120.50, SL: 121.30, TP: 120/ 119.20/ 118.80
Comment:
EUR/JPY hovers around 119 handle. Bias lower.

Cloud base is strong support at 118.90.

Break below will see drag upto 117.80
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