- EUR/JPY is trading in an extremely narrow range, consolidating break below 200-DMA.
- The pair is currently hovering around 130 handle, we see scope for further weakness.
- 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 - 130.92 (5-DMA), 131.25 (200-DMA), 132.15 (23.6% Fib), 132.79 (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 131.25. Hold for further weakness.
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