- EUR/JPY slipped below the 130 handle on Friday’s trade, hit a fresh 7-month low at 129.67, but has currently pared some losses on the day to currently trade at 129.94
- The pair continues to see successively lower retracement highs, 130.10 high today, likely cap for now, hourly cloud above between 130.05-25
- 100 and 200 SMAs show bearish crossover around 135.20 for the first time since mid August, further confirming the risk towards the downside
- Daily RSI is probing its most oversold reading since the September and Stochs are also in highly overbought zone, so some caution advised as pair might see some unwinding
- Immediate resistance is located at 130.16 (5 DMA) ahead of 130.25 (Daily High Nov 27), while supports are seen at 129.67 (Nov 27 low) and further below at 129.63 (76.4% Fibo 126.08-141.06)
Recommendation: Good to sell rallies around 130 levels, SL: 130.60, TP1: 129.30, TP2: 129Resistance Levels:R1: 130.16 (5 DMA) R2: 130.25 (Daily High Nov 27)R3: 130.35 (Daily High Nov 26)Support Levels:S1: 129.67 (Nov 27 low)S2: 129.63 (76.4% Fibo 126.08-141.06)S3: 129.39 (Daily Low Apr 28)
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