127 next likely stop for EUR/JPY bears, good to short upticks
EUR/JPY hit fresh 9-month lows around 127.32, but pared some losses to egde slightly higher as the yen trims gains amid a minor-recovery in the Japanese stocks.
The pair has broken major trendline support at 128.67 levels in Tuesday's trade and is currently trading around 127.50.
Price action is below all major moving averages on daily charts, momentum studies on daily and weekly charts indicate downside.
127 levels next likely stop for EUR/JPY bears, and further weakness could see 126 levels.
Daily Stochs and RSI are in oversold territory, so caution advised, retrace and close above wedge base at 128.60 negates bearish bias.
Resistance lies at 128 (psychological level), ahead of 128.60 (wedge base), while to the downside, the cross finds immediate support at 126.90 (March 13 low), below that 126.09(April 2015 low).
We would go short on rallies around 127.70/80, SL: 128.50, TP: 127/126.10
The pair has broken major trendline support at 128.67 levels in Tuesday's trade and is currently trading around 127.50.
Price action is below all major moving averages on daily charts, momentum studies on daily and weekly charts indicate downside.
127 levels next likely stop for EUR/JPY bears, and further weakness could see 126 levels.
Daily Stochs and RSI are in oversold territory, so caution advised, retrace and close above wedge base at 128.60 negates bearish bias.
Resistance lies at 128 (psychological level), ahead of 128.60 (wedge base), while to the downside, the cross finds immediate support at 126.90 (March 13 low), below that 126.09(April 2015 low).
We would go short on rallies around 127.70/80, SL: 128.50, TP: 127/126.10