FxWirePro: EUR/JPY struggles at 200-DMA, close below 5-DMA could see minor weakness

• EUR/JPY struggles to extend break above 200-DMA resistance at 131.90.
   
• The pair has slipped lower with a shooting star formation at highs.
   
• Price has dipped below 5-DMA at 131.10 and is currently at 131.32 levels.
   
• The pair has retraced dip below 1H 110-EMA and we evidence a hammer formation on the hourly candle.
   
• Break below 1H 110-EMA at 131.29 will see further weakness. Scope then for test of 1H 200-SMA at 130.82.
   
• Technical indicators on daily charts still support upside, break above 200-DMA raises scope further gains.
   
• Next major resistance above 200-DMA lies at 61.8% Fib at 132.58. On the flipside, break below 5-DMA to see minor weakness. Break below 110-EMA will negate bullish bias.

Support levels - 131.41 (5-DMA), 131.06 (50% Fib), 130.36 (110-EMA), 130

Resistance levels - 131.90 (200-DMA), 132, 132.58 (61.8% Fib)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -60.4833 (Neutral), while Hourly JPY Spot Index was at 46.7077 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.