EUR/JPY capped below the 130 handle, more downside likely
EUR/JPY continues to see successively lower retracement highs, 130.10 high today, likely cap for now, hourly cloud above between 130.05-25
The pair slipped below the 130 handle on Friday's trade, hit a fresh 7-month low at 129.67, but has pared some losses on the day to currently trade at 129.94
100 and 200 SMAs show bearish crossover around 135.20 for the first time since mid August, further confirming the risk towards the downside
Daily RSI is probing its most oversold reading since the September and Stochs are also in highly overbought zone, so some caution advised as pair might see some unwinding
We would sell rallies to target 129.30 initially and then 129 levels, immediate resistance is located at 130.16 (5 DMA), while support is seen at 129.67 (Nov 27 low)
Resistance Levels:
R1: 130.16 (5 DMA)
R2: 130.25 (Daily High Nov 27)
R3: 130.35 (Daily High Nov 26)
Support Levels:
S1: 129.67 (Nov 27 low)
S2: 129.63 (76.4% Fibo 126.08-141.06)
S3: 129.39 (Daily Low Apr 28)
The pair slipped below the 130 handle on Friday's trade, hit a fresh 7-month low at 129.67, but has pared some losses on the day to currently trade at 129.94
100 and 200 SMAs show bearish crossover around 135.20 for the first time since mid August, further confirming the risk towards the downside
Daily RSI is probing its most oversold reading since the September and Stochs are also in highly overbought zone, so some caution advised as pair might see some unwinding
We would sell rallies to target 129.30 initially and then 129 levels, immediate resistance is located at 130.16 (5 DMA), while support is seen at 129.67 (Nov 27 low)
Resistance Levels:
R1: 130.16 (5 DMA)
R2: 130.25 (Daily High Nov 27)
R3: 130.35 (Daily High Nov 26)
Support Levels:
S1: 129.67 (Nov 27 low)
S2: 129.63 (76.4% Fibo 126.08-141.06)
S3: 129.39 (Daily Low Apr 28)
