EUR/JPY has broken major trendline support at 132.40, bias lower.
Momentum studies are bearish, RSI below 50, Stochs biased lower.
We see bearish divergence on RSI and Stochs which raises scope for downside.
Technical indicators on weekly charts are also turning bearish. RSI and Stochs have rolled over from overbought levels.
We see scope for test of 50-DMA at 131.22. Violation there could see further downside.
On the flipside, retrace above 5-DMA at 132.53 could negate bearish bias.
Support levels - 131.22 (50-DMA), 131, 129.79 (23.6% Fib retrace of 114.85 to 134.405 rally)
Resistance levels - 132.53 (5-DMA), 133, 133.49 (Oct 11 high)
Good to go short on rallies around 132/132.10, SL: 132.60, TP: 131.25/ 131/ 129.80
Momentum studies are bearish, RSI below 50, Stochs biased lower.
We see bearish divergence on RSI and Stochs which raises scope for downside.
Technical indicators on weekly charts are also turning bearish. RSI and Stochs have rolled over from overbought levels.
We see scope for test of 50-DMA at 131.22. Violation there could see further downside.
On the flipside, retrace above 5-DMA at 132.53 could negate bearish bias.
Support levels - 131.22 (50-DMA), 131, 129.79 (23.6% Fib retrace of 114.85 to 134.405 rally)
Resistance levels - 132.53 (5-DMA), 133, 133.49 (Oct 11 high)
Good to go short on rallies around 132/132.10, SL: 132.60, TP: 131.25/ 131/ 129.80