FxWirePro: EUR/JPY grinds lower along 5-DMA, bias lower, stay short

• EUR/JPY extends break below 21-EMA, grinds lower along 5-DMA, bias lower.
   
• The major recovered from session lows at 126.64 to close at 128.49.
   
• The pair has resumed weakness on the day, trades 0.02% lower on the day at 127.51 levels.
   
• We expect further weakness on bearish signals on technical indicators along with the above fundamental factors.
   
• Market participants keep focus on speeches coming from the ECB forum in Portugal for further impetus.
   
• Next major bear target lies at 38.2% Fib at 126.69. Break below to see test of 125.25 (major trendline).
   
• On the upside, 55-EMA is major resistance. Bearish invalidation only on break above.

Support levels - 127, 126.69 (38.2% Fib), 126, 125.25 (major trendline)

Resistance levels - 127.98 (5-DMA), 128, 128.72 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Euro-nosedives-after-dovish-ECB-taper-could-extend-drop-further-good-to-short-upticks-in-EUR-JPY-1371359) has hit all targets.

Recommendation: Book partial profits at lows. Trail SL to 128. Target 126.20/ 125.50.