Description
⋅ EUR/JPY edges higher from session lows at 120.85, has reclaimed 50-DMA at 121.
Daily cloud offers stiff resistance on the upside, bias remains lower.
RSI nicely converging with price action, bearish invalidation only on close above daily cloud.
Stochs are biased lower after rollover from overbought zone and MACD is on the verge of a bearish crossover on signal line.
Pair on track to test 100-DMA at 120.45, violation there could see further downside upto 120 levels.
Focus on a speech by ECB's Draghi along with German Buba monthly report, both due later today.
Support levels - 121 (50-DMA), 120.56 (50% Fib retrace of 118.23 to 122.88 rally), 120.45 (100-DMA)
Resistance levels - 121.40 (cloud top), 121.53 (5-DMA), 122, 122.42 (Jan 13 high)
Good to go short on rallies, SL: 122, TP: 121/ 120.60/ 120.45/ 120