FxWirePro: EUR/JPY holds major trendline support at 119.35, break below will see further downside

• EUR/JPY finds strong support at major trendline support at 119.35.
   
• The pair has bounced back from session lows at 119.52, but upside fails 120 handle.
   
• Technical studies remain highly bearish, we see scope for further downside.
   
• Yen weakness in the Asian session amid risk-on and recovery in UST yields supporting upside in the pair.
   
• Recovery lacks traction, 5-DMA weighs on the upside, we see no signs of reversal in the pair.
   
• Break below trendline support at 119.35 will see resumption of downside.

Support levels - 119.35 (trendline), 119, 118.70 (Dec 5, 2016 low)

Resistance levels - 120.25 (5-DMA), 120.58 (23.6% Fib retrace of 109.20 to 124.09 rally), 120.86 (cloud base)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Bullish                Neutral       
1D          Bearish               Neutral        
1W         Bearish               Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-recovery-rejected-at-session-highs-bias-lower-stay-short-605456) has almost achieved TP1&2. 

Recommendation: Book partial profits, lower trailing stop to 120.25, stay short

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -7.23562 (Neutral), while Hourly JPY Spot Index was at 30.9823 (Neutral) at 0655 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.