EUR/JPY breaks 200-DMA support, slips below 131, stay short:FxWirePro | February 28, 2018

EUR/JPY -0.19% breaks below strong support at 200-DMA 0.00% at 131.23, bias lower.

The pair has slipped below 131 handle to hit session lows at 130.89 (lowest since Sept 15 2017)

Technical indicators are bearish . RSI and Stochs are biased lower. We see -ve DMI dominance.

Momentum studies are heavily bearish , but Stochs are in oversold levels so caution advised.

Violation at 200-DMA 0.00% raises scope for further weakness. Scope now for test of 38.2% Fib at 128.85.

On the flipside, retrace and close above 200-DMA 0.00% could see some consolidation. Breakout at 20-DMA invalidates bearish bias.

Support levels - 130.60 (Sept 15 low), 129.37 (Sept 6 low), 128.85 (38.2% Fib retrace of 114.85 to 137.506 rally)

Resistance levels - 131.23 ( 200-DMA 0.00% ), 131.35 (5-DMA), 132.15 (23.6% Fib), 133.16 (20-DMA)

Good to go short on rallies around 130.90/131, SL: 132.15, TP: 130.60/ 130/ 129.40/ 128.85.