3 May 2019
EUR/JPY: Trapped below cloud and bearish MAs but 38.2% Fibo and trendline support is solid
- EUR/JPY is neutral mode although stochastics lean bullish but the price has been unable to break up through the 20 and 50-DSMAs, capped at 125.10.
- However, on a break of the moving averages, bulls will be looking to hold above the 23.6% Fibos confluence and resistance for a run to the trend line resistance.
- A break there opens prospects for the 127 handle and the 200-DMA (127.50).
- Is it probable though? At this juncture, there is a neutral bearish bias considering the 38.2% has held on multiple occasions, although price remains below cloud support and bearish MAs.
- On the downside, a break of 124.80, the risk would be for a subsequent test of trend line support guarding the 38.2% Fibo.
- Below 123.40 (Jan 7 and Jan 15 lows) opens the 50% Fibo at 123.02.
- A break there will likely see the price continue in its southerly trajectory, extending last September's bear trend.
