FxWirePro: EUR/JPY trades rangebound, 110W EMA threatens 8-days' bullish streak

EUR/JPY chart - Trading View 

EUR/JPY was trading largely muted at around 122.25 at 06:25 GMT as markets await ECB monetary policy meeting. 

The European Central Bank is expected to add 500 billion Euros to its Pandemic Emergency Purchase Programme (PEPP).

The hopes of the economic recovery from the pandemic-led halt are gaining momentum.

Safe-haven bets for the Japanese diminished as risk-on improved across markets after positive comments from US President Donald Trump.

Trump struck an upbeat tone, as far as the economic recovery is concerned, while stepping back from military use to tame the riots.

The major is showing minor signs of exhaustion after a strong run-up from multi-year lows at 114.39.

110-W EMA is offering stiff resistance at 122.43. Oscillators are at overbought levels and are showing a bearish divergence on the hourly charts.

Major trend in the pair is strongly bullish. Pullbacks are likely to be shallow and will provide opportunities for entering long positions.

Major weakness only below 200-DMA. Breakout at weekly cloud and 110W EMA to propel the pair higher. 

Major resistance lies at 122.55 (nearly converged cloud and 110W EMA). Major support is seen at 200-DMA at 119.33.