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FxWirePro: EUR/JPY consolidates break below 200-DMA, outlook bearish

Chart - Courtesy Trading View 

EUR/JPY was trading in a narrow range with session high at 130.50 and low at 130.34.

The pair is consolidating Friday's breach below 200-DMA, scope for further downside.

5-DMA is sharply lower, price action is now below major moving averages.

MACD support downside. ADX is rising in support of -ve DMI dominance.

Momentum is strongly bearish. Stochs and RSI are sharply lower, RSI is well below the 50 mark.

GMMA indicator shows short-term moving averages confirm a bearish crossover on longer-term moving averages.

Support levels - 130.16 (20-week MA), 130.06 (Lower BB), 129.55 (Trendline)

Resistance levels - 130.46 (200-DMA), 130.57 (5-DMA), 130.81 (55-EMA)

Summary: EUR/JPY trades with a bearish bias. Scope for test of trendline support at 129.55. Bearish invalidation likely on retrace above 200-DMA. 
 

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