• FxWirePro: EUR/JPY holds above 23.6% Fibonacci, break below 110-ema keeps scope for further downside

    Source: FxWire Pro - Technicals / 14 Feb 2018 03:48:13   Eastern Standard Time

    • EUR/JPY edges higher from session lows at 132.36, break below 110-EMA keeps scope for downside.
       
    • The major has slipped below 133 handle and is currently trading at 132.85, down 0.22% on the day.
       
    • Technical indicators support weakness. Next likely bear target lies at 200-DMA at 130.85.
       
    • MACD has shown a bearish crossover and RSI biased south. We see -ve DMI dominance on daily charts and ADX rising.
       
    • Price action finds stiff resistance at 100-DMA at 133.59, we see bearish invalidation on decisive break above.

    Support levels - 132.15 (23.6% Fib 114.851 to 137.506 rally), 131.16 (Nov 20 low), 130.85 (200-DMA)

    Resistance levels - 133.06 (110-EMA), 133.59 (100-DMA), 133.90 (cloud base)

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1144897) has hit TP1.

    Recommendation: Bias lower, stay short

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