FxWirePro: EUR/JPY extends weakness for the 5th straight session, eyes 200-DMA at 121.13

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.22% lower on the day at 121.81 at around 07:15 GMT, after closing 0.37% lower in the previous session.

The pair is extending weakness for the 5th straight session, hits fresh multi-week lows at 121.61.

The single currency depressed as the resurgence of the coronavirus cases in Europe threatens to derail the Eurozone economic recovery. 

Further, a strongly dovish European Central Bank, which on Thursday gave a strong hint that it could boost its emergency bond-buying program at its December policy meeting weighs on the upside.

Focus now on Eurozone's preliminary Consumer Price Index for October along with German GDP due later today for further impetus.

Technical analysis supports further downside. Momentum strongly bearish. Rising volatility to drag prices lower.

Price action is extending weakness below 38.2% Fib. Next bear target lies at 200-DMA at 121.13. Violation there could plummet prices further.

Immediate resistance lies at 38.2% Fib at 122.23. Bearish invalidation only above 110-EMA at 123.08.