FxWirePro: EUR/JPY extends weakness for the 3rd session, tests cloud base support, outlook bearish

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.16% lower on the day at 123.66 at around 09:50 GMT, after closing 0.44% lower in the previous session.

The pair is extending weakness for the 3rd straight session with technical indicators suggesting further downside.

Momentum studies are bearish. Stochs and RSI are biased lower and RSI is below 50 which supports downside.

Recovery attempts were rejected at 50-DMA and price action is currently pivotal at cloud base support.

Break below cloud will drag prices lower. Scope for test of 200-DMA at 121.04. 

On the flipside, 50-DMA is stiff resistance at 124.78. Decisive break above will negate further bearishness. 

Support levels - 123.30 (trendline support), 121.04 (200-DMA)

Resistance levels - 124.30 (5-DMA), 124.78 (50-DMA)