EUR/JPY
Overview-
The pair has been consolidating at 50-week Sma just holding above that for last five weeks, but making higher highs for three weeks. In case the nearest strong support at the 137.68 level breaks below this, 136.21 is an open target on the downside. We can see the medium-term weakness below 136.21 for a downside target at 134.30 and 131.20 levels. On the upside, it has strong resistance between 139.25-140.16 levels.
Monthly basis - The pair is trading below the short-term and medium-term moving averages. It is unable to keep above the 20-day Sma at 138.55 levels. The pair pulled back from the 137.68 levels , but rejected at 200-day Sma. It favors "selling the rally" strategy until it breaks the 139.30 levels. The monthly trading pattern is framed between 137.70-139.30. Bulls must close above 139.30 as bears are expected to regain their strength, they must hit the 137.70 levels for an another steep fall up to 134 and 131 levels.
Monthly key support levels 137.70
