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FxWirePro: EUR/JPY slips below daily cloud, more weakness on cards

Chart - Courtesy Trading View 

Technical Analysis:

- EUR/JPY was trading 1.21% lower on the day at 137.54 at around 10:30 GMT

- The pair has slipped below daily cloud, raising scope for further downside

- Momentum is bearish, Stochs and RSI are sharply lower, RSI is well below 50

- GMMA indicator shows major trend is neutral while minor trend is bearish

- MACD and ADX support downside in the pair. Chikou span is biased lower

Support levels:

S1: 137.20 (110-EMA)

S2: 136.83 (Lower BB)

Resistance levels:

R1: 138.74 (5-DMA)

R2: 139.51 (21-EMA)

Summary: EUR/JPY break below cloud has opened downside in the pair. Scope for test of 38.2% Fib at 136.68. 
 

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