FxWirePro: EUR/JPY fails to hold gains above 124 handle, break below 5-DMA could see further weakness

• EUR/JPY slips from fresh 5-month tops at 124.46 as the Japanese currency gains momentum.
   
• The major has now retreated to the 123.30 region and is holding support by 5-DMA at 123.15.
   
• Break below 5-DMA could see weakness upto 122.25 (1H 200-SMA).
   
• Momentum indicators on the daily charts are at highly overbought zone and have shown a turn lower.
   
• The pair has broken below major trendline support at 123.35 on the daily charts.
   
• We see bearish RSI divergence on 4H charts and RSI and Stochs are biased lower.

Support levels - 122.58 (May 4 low), 122.26 (1H 200-SMA), 122

Resistance levels - 123.13 (5-DMA), 124, 124.45 (session high)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Neutral      

4H          Bearish               Neutral      

1D          Neutral               Neutral       

1W         Bullish               Neutral     

Recommendation: Good to go short on rallies around 123.10/20, SL: 124, TP: 122.60/ 122.25/ 122

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -104.793 (Bearish), while Hourly JPY Spot Index was at 49.8649 (Neutral) at 1000 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.