FxWirePro: EUR/JPY extends weakness for the 3rd straight session, breaks below 20-DMA

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.41% lower on the day at 125.36 at around 06:45 GMT after closing 0.26% lower in the previous session.

The pair is extending weakness for the 3rd straight session and has shown a break below 20-DMA support.

The single currency under pressure for the third consecutive session on Thursday after comments from the ECB Chief Economist Philip Lane, who said that the euro-dollar exchange rate does matter for monetary policy. 

The remarks suggested that the policy makers were starting to become uncomfortable with the single currency's recent appreciation.

On the data front, focus remains on the final Eurozone Services PMIs for August along with July Retail Sales data.

Major trend in the pair is bullish, but stiff resistance is seen at 127 levels (major falling trendline). Breakout at 127 mark will see further gains.

On the flipside, 200W MA at 125.04 is major support. Technical studies suggest the pair to hold support at 125 mark. Breach below will change near-term dynamics.