- EUR/JPY has broken support at 20-DMA at 134.39 to hit 3-week lows at 134 levels.
- The pair is extending downside for 4th successive session after shooting star at highs.
- The Bank of Japan, in a surprise decision on Tuesday, announced that it cut its purchases of long-term Japanese government bonds by Y10 bn to Y190 bn.
- Yen extends strength into European session. Technical studies on intraday charts are bearish, RSI and Stochs are biased lower.
- Next immediate support lies at 50-DMA at 133.36, breach there raises scope for test of 133 levels.
- On the flipside, retrace and close above 20-DMA negates bearish bias.
Support levels - 133.36 (50-DMA), 133 (trendline), 132.90 (20W SMA)
Resistance levels - 134.35 (5W SMA), 134.39 (20-DMA), 135
Recommendation: Good to go short on rallies around 134.10/20, SL: 134.60, TP: 133.40/ 133/ 132.90.
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