FxWirePro: EUR/JPY Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.35% higher on the day at 138.96 at around 11:20 GMT.

Previous Week's High/ Low: 142.85/ 138.01

Previous Session's High/ Low: 140.40/ 138.01

Fundamental Overview:

Japanese markets have witnessed a massive sell-off as investors are awaiting the announcement of the Bank of Japan (BOJ) monetary policy on Wednesday. 

Investors are waiting nervously to see if the BOJ will defend its super-sized stimulus policy at a pivotal meeting on Wednesday, which could drive big moves in the yen crosses.

On the data front, German Wholesale Prices contracted 1.6% MoM in December and rose 12.8% over the last twelve months.

Further, Eurogroup meeting will be in the limelight throughout the session. Major updates could influence price action. 

Technical Analysis:

- Price action has slipped below 200-DMA

- GMMA indicator shows major and minor trend are bearish

- Recovery was capped at daily cloud

- Momentum is bearish, Stochs and RSI are biased lower

Major Support and Resistance Levels:

Support - 138.53 (55-week EMA), Resistance - 140.68 (200-DMA)

Summary: EUR/JPY snaps 2-day downside, but recovery lacks traction. Scope for further downside.