EUR/JPY down around 300-pips in two days, techs indicate further downside for the pair.
- The major has been trading a falling channel and tests of 125.50 levels likely on charts.
- The following support further downside:
- A bearish crossover of MACD line over signal line
- RSI is at 34 with room for further downside
- Stochs point south
- Supports on the downside are seen at 126.16 (Jan 21st lows) and then 126.09 (Apr 14th 2015 lows) and then 125.25 (channel base).
- Immediate resistance on the upside is seen at 128 (session highs), 128.41 (Jan 15 highs) and then at 128.56 (Jan 19th highs).
- We have advised a short from 131 levels (http://www.econotimes.com/FxWirePro-EUR-JPY-sees-multiple-rejections-at-channel-top-good-to-sell-rallies-156355).
Recommendation:
If already short, hold trade for TP:125.50, lower trailing stop to 128.
Even new shorts are good at these levels, enter around 127.30, SL: 128, TP: 126.20/125.50
