FxWirePro: EUR/JPY recovery rejected at session highs, bias lower, stay short

• EUR/JPY extends downside after break below 100-DMA on Wednesday's trade.
   
• Technical studies remain highly bearish, we see scope for further downside.
   
• Recovery attempts in the pair from fresh monthly lows at 119.68 were rejected at session highs by 120.31.
   
• 5-DMA weighs on the upside, we see no signs of reversal in the pair.
   
• Next major support seen at 119.23 (78.6% Fib retrace of 118.23 to 122.88 rally).

Support levels - 119.23 (78.6% Fib retrace of 118.23 to 122.88 rally), 119, 118.70 (Dec 5, 2016 low)

Resistance levels - 120.54 (5-DMA), 120.56 (61.8% Fib), 120.93 (cloud base)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish               Neutral       
4H          Bearish               Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-edges-higher-from-10-day-lows-at-12065-finds-strong-support-at-12051-100-DMA-600019) has achieved all targets.

Recommendation: Good to go short on rallies around 120.15/20, SL: 120.60, TP: 119.70/ 119.25/ 119

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 9.49818(Neutral), while Hourly JPY Spot Index was at 141.892 (Bullish) at 0750 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.