FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.10% higher on the day at 128.70 at around 06:55 GMT

Previous Week's High/ Low: 130.60/ 127.97

Previous Session's High/ Low: 129.98/ 127.97

Fundamental Overview:

Ongoing virus concerns in the euro area keep the single currency under pressure.

Austria will be the first country in Western Europe to reimpose a full lockdown amid surging COVID-19 cases and Germany is likely to follow suit.

The shared currency also undermined by the fact that the ECB has been pushing back on market bets for tighter policy.

Technical Analysis:

- EUR/JPY is trading below cloud and major moving averages

- Moving averages are trending lower, volatility is high and rising

- 'Death Cross' on the daily charts keeps scope for more weakness

- Price action has broken below 55-week EMA, extends weakness further into the weekly cloud

- MACD and ADX support downside in the pair

- The pair has formed 'Triple Bottom' at 127.93, break below required for downside continuation

Major Support and Resistance Levels:

Support - 127.93 (Triple Bottom), Resistance - 128.88 (55-week EMA)

Summary: EUR/JPY trades with a bearish technical bias. Watch out for break below 127.93 for further weakness. Break above 5-DMA (129.26) to see more upside.