- EUR/JPY slumps, down 0.66% at the time of writing as eurozone CPI fails to impress.
- The pair has slipped below 130 handle and was currently trading at 129.75, bias lower.
- Upside was rejected at 50-DMA on May 14th trade, we see upside only on break above.
- Technical indicators are biased lower, RSI biased south, MACD below zero and we see -ve DMI dominance.
- Next bear target lies at 129.35 (major trendline). Break below will see test of 38.2% Fib at 128.85.
- On the flipside, we see major resistance at 131.27 (nearly confirmed 50 and 20 DMAs). Upside only on break above.
Support levels - 129.35 (trendline), 129, 128.85 (38.2% Fib)
Resistance levels - 130, 130.43 (5-DMA), 131.27 (nearly confirmed 50 and 20 DMAs)
Recommendation: Good to go short on rallies around 130, SL: 130.50, TP: 129.35/ 129/ 128.85
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