FxWirePro: EUR/JPY extends weakness for the 3rd straight session, slips below 5-DMA

EUR/JPY chart - Trading View 

EUR/JPY grinds lower for the 3rd straight session, overbought oscillators exert pressure.

The pair was trading 0.18% lower at 125.60 at around 05:18 GMT after closing 0.30% lower in the previous session.

The latest monthly Reuters Tankan survey released on early Tuesday showed the Japanese business sentiment improved slightly in the four months to August .

Survey found that the mood of manufacturers rose to -33 in August from -44 the previous month, its highest since February. The service-sector gauge was at -23 from -26.

Price action is consolidating above 200W MA and technical indicators support upside. The pair finds major resistance at 127.34.

Pullbacks on account of overbought oscillators can see dip till strong supports at 200W MA at 124.94 and 21-EMA at 124.63.

'Golden Cross' on the daily charts will limit downside. Bullish invalidation only below 200-DMA.

Support levels - 125.47 (200H MA), 124.99 (200W MA), 124.63 (21-EMA)

Resistance levels - 125.99 (5-DMA), 126.56 (Upper BB), 127.20 (Major Trendline)