- EUR/JPY has retraced brief break out above 200-DMA at 131.35, slipped lower from session highs at 131.55.
- The pair has held strong support at 200W SMA at 129.53, further weakness only on decisive break below.
- EUR/JPY has edged higher after 4 consecutive weeks of downside, bias still bearish.
- The pair currently finds stiff resistance at 5W SMA at 131.57. Daily price has retraced from session highs at 131.54 and is currently hovering around 131 handle.
- Decisive break below 200W SMA eyes 38.2% Fib retrace of 114.85 to 137.50 rally at 128.85.
- On the flipside, retrace and close above 200-DMA could see some consolidation. Breakout at 20-DMA invalidates bearish bias.
Support levels - 130.53 (5-DMA), 129.53 (200W SMA), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)
Resistance levels - 130, 130.51 (5-DMA), 131.30 (200-DMA), 132.15 (23.6% Fib), 132.20 (20-DMA)
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