FxWirePro: EUR/JPY Daily Outlook

EUR/JPY chart - Trading View 

EUR/JPY has erased early losses and was trading largely unchanged at 124.36, up from session lows at 124.15.

Mixed German and Eurozone ZEW data fails to provide support to the single currency. While on the other side, risk aversion keeps the Yen bid.

Data released earlier today showed German ZEW headline Economic Sentiment Index came in at 56.1 versus 73.0 expectations and 77.4 last. 

Eurozone ZEW Economic Sentiment for October printed at 52.3 vs.70.5 expected and compared to 73.9 in the previous month.

EUR/JPY poised for further weakness as upside remains capped at 50-DMA which is offering stiff resistance at 124.82.

The pair has seen multiple rejections at 50-DMA and has slipped below -DMA. RSI is flat while Stochs are on verge of rollover from overbought levels.

Price action is above 200-DMA, but major and minor trend as evidenced by the GMMA have gone flat.

We see scope for dip till trendline support at 123.35 before the pair resumes uptrend. Bullish invalidation only below 200-DMA.