EUR/JPY below trendline support, sell rallies around 132.70

EUR/JPY tests fresh lows at 132.28 as the single currency remains heavy on dovish Draghi talk

Daily price action remains well below the cloud and major Moving Averages, and has been consistently capped below the trendline (133.20) since Oct 28th

Price action on the weekly charts has also dipped below the cloud, and Techs on weeklies also point South, pair could test 131 levels

Markit PMI surveys data for Eurozone released earlier pointed to quarterly economic growth of around 0.4 percent, in line with the forecasts

EZ business growth remained tepid last month, with ECB's massive stimulus program having little apparent impact on economic activity or price pressures

The Eurozone Services Business Activity Index posted 54.1 in October, up from September’s seven-month low of 53.7 but below the earlier flash estimate of 54.2.

EUR/JPY is currently trading at 132.50, with immediate resistance at 132.90 (session high), while support is seen at 132.30 (Daily Lows Oct 30/Nov 4)

Recommendation: Good to sell rallies around 132.70, SL: 133.25, TP1: 132.20, TP2: 131.95

Resistance Levels:

R1: 132.90 (Session High Nov 4)

R2: 132.93 (Tenkan-Sen)

R3: 133.10 (Daily High Nov 3)

Support Levels:

S1: 132.30 (Oct 30 Low)

S2: 132.00 (Psychological Level)

S3: 131.60 (Oct 29 Low)

Trade closed: target reached:

We had given the following Recommendation

"Good to sell rallies around 132.70, SL: 133.25, TP1: 132.20, TP2: 131.95"

Targets were reached, trade exited.