• FxWirePro: EUR/JPY resumes downside after break below 200-dma, upside capped at 5-dma

    Source: FxWire Pro - Technicals / 02 Mar 2018 01:38:51   Eastern Standard Time

    • EUR/JPY has resumed downside after close below 200-DMA on Feb 28th trade.
    • Minor recovery attempts capped below 5-DMA which is immediate resistance at 130.62.
    • Yen remains bid amid risk-off after Trump's protectionist-tariff announcements sent markets in a tailspin overnight.
    • EUR/JPY is down 0.34% on the day, trading at 129.83 levels at the time of writing.
    • Technical indicators are bearish. RSI and Stochs are biased lower. We see -ve DMI dominance.
    • Immediate bear target lies at 200W SMA at 129.58. Violation there will see test of 38.2% Fib retrace of 114.85 to 137.506 rally 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 - 129.58 (200W SMA), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)

    Resistance levels - 130, 130.62 (5-DMA), 131.27 (200-DMA), 132.15 (23.6% Fib), 132.42 (20-DMA)

    Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-breaks-200-DMA-support-slips-below-131-handle-good-to-go-short-on-rallies-1174056) has hit TP1/2.

    Recommendation: Book partial profits. Trail stop loss to 131. Hold for further weakness.

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