FxWirePro: EUR/JPY extends weakness, euro under pressure ahead of German services PMI

EUR/JPY chart - Trading View 

EUR/JPY extending weakness for the 3rd straight session, trades 0.18% lower on the day at 121.50 at 05:20 GMT.

Risk-off triggered by US threat to impose additional tariffs on EU’s imported goods, sent German bond yields to fresh record lows, weighing on the euro.

The pair has failed at 55-EMA resistance and has retraced below 21-EMA support.

Major trend is bearish. Stochastics RSI is showing rollover from overbought levels. 

Break below 21-EMA has opened up downside, dip till lower Bollinger band at 121.15 ahead of trendline at 120.20 likely.

Focus on German Markit Services PMI (June), scheduled for release at 07:55 GMT for further impetus.

PMI is expected to show the pace of expansion of the activity remained unchanged at 55.6 in June. 

Strong resistance is seen at 122.16 (nearly converged 5-DMA and 21-EMA). Bearish invalidation only above daily cloud.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.