FxWirePro: EUR/JPY eyes trendline support at 124.55, break below to see further downside

EUR/JPY chart - Trading View 

• EUR/JPY is extending weakness after rejection at 110-EMA.
   
• The pair is trading 1.14% lower on the day as the single currency dumped across the board.
   
• The latest disappointment from German/Euro-zone manufacturing PMI prints helped reignite global growth worries, denting euro.
   
• German manufacturing PMI showed that factory activity slipped deeper into contraction territory in March.
   
• Composite Euro-zone manufacturing PMI also fell to a 71-month low level of 47.6.
   
• The pair has slipped below 50-DMA at 125.30 and is hovering around trendline support at 124.55.
   
• Break below will see test of 123.40 (Jan 15 low) then 122.80 (Lower BB).
   
• Immediate resistance is at 125.83 (55-EMA), bearish invalidation only above 110-EMA.

Support levels - 124, 123.40 (Jan 15 low), 122.80 (Lower BB)

Resistance levels - 125.84 (nearly converged 55 and 21 EMAs), 126, 126.56 (110-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1514343) has hit.

Recommendation: Book partial profits at lows, watchout for break below 124.55 for further weakness.

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