FxWirePro: EUR/JPY capped at 200-DMA, set to resume weakness

EUR/JPY chart - Trading View 

EUR/JPY has failed to sustain Friday's massive gains. Upside has been capped at 200-DMA which is stiff resistance (currently at 120.10).

After a few extremely volatile sessions, the pair is currently trading 0.30% lower on the day at 118.03 at around 10:40 GMT.

Back-to-back long-legged Dojis on the daily charts suggests selling pressure and highs.

Major and minor trend for the pair are bearish as evidenced by the downward sloping moving averages in the GMMA indicator.

Price action is capped below weekly cloud and 21W EMA (currently at 120.057). Momentum is bearish and RSI is below 50.

Resumption of downside likely. Next bear target lies at 116 (trendline) ahead of 78.6% Fib at 115.26.

Support levels - 116 (trendline), 115.26 (78.6% Fib)

Resistance levels - 119.02 (21-EMA), 120.10 (200-DMA)

Recommendation: Good to stay short on upticks around 118.20-118.60, SL: 120.00, TP: 117.70/ 117/ 116.