- EUR/JPY extends weakness for 5th consecutive week, bias still bearish.
- The pair finds strong support at 200W SMA at 129.53. We see further weakness only on decisive break below.
- The pair has retraced brief dip below 200W SMA. Price has recovered from session lows at 129.35 and is currently hovering around 130 handle.
- Decisive break below 200W SMA eyes 38.2% Fib retrace of 114.85 to 137.50 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 - 129.53 (200W SMA), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)
Resistance levels - 130, 130.51 (5-DMA), 131.30 (200-DMA), 132.15 (23.6% Fib), 132.20 (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 TP1/2/3.
Recommendation: Book partial profits. Watch out from breach below 200W SMA for further weakness.
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