EUR/JPY breaks 200-DMA support, slips below 131, stay short
EUR/JPY breaks below strong support at 200-DMA at 131.23, bias lower.
The pair has slipped below 131 handle to hit session lows at 130.89 (lowest since Sept 15 2017)
Technical indicators are bearish. RSI and Stochs are biased lower. We see -ve DMI dominance.
Momentum studies are heavily bearish, but Stochs are in oversold levels so caution advised.
Violation at 200-DMA raises scope for further weakness. Scope now for test of 38.2% Fib at 128.85.
On the flipside, retrace and close above 200-DMA could see some consolidation. Breakout at 20-DMA invalidates bearish bias.
Support levels - 130.60 (Sept 15 low), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)
Resistance levels - 131.23 (200-DMA), 131.35 (5-DMA), 132.15 (23.6% Fib), 133.16 (20-DMA)
Good to go short on rallies around 130.90/131, SL: 132.15, TP: 130.60/ 130/ 129.40/ 128.85.
The pair has slipped below 131 handle to hit session lows at 130.89 (lowest since Sept 15 2017)
Technical indicators are bearish. RSI and Stochs are biased lower. We see -ve DMI dominance.
Momentum studies are heavily bearish, but Stochs are in oversold levels so caution advised.
Violation at 200-DMA raises scope for further weakness. Scope now for test of 38.2% Fib at 128.85.
On the flipside, retrace and close above 200-DMA could see some consolidation. Breakout at 20-DMA invalidates bearish bias.
Support levels - 130.60 (Sept 15 low), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)
Resistance levels - 131.23 (200-DMA), 131.35 (5-DMA), 132.15 (23.6% Fib), 133.16 (20-DMA)
Good to go short on rallies around 130.90/131, SL: 132.15, TP: 130.60/ 130/ 129.40/ 128.85.
Comment:
TP3 hit. Book partial profits at lows.
200W SMA at 129.53 is offering strong support.
Further weakness only on decisive break below.
200W SMA at 129.53 is offering strong support.
Further weakness only on decisive break below.
TP1/2 hit. Bias lower.