FxWirePro: EUR/JPY capped below 5-DMA, more slumps likely in 'Anti Gartley' pattern

• ECB policy decision will remain the main market driver for the Euro today, dovish tilt expected in Draghi's presser.
   
• Euro took a beating yesterday after Bloomberg headlines cited that the ECB is said to cut inflation forecasts through 2019.
   
• EUR/JPY slumped to lows of 122.63, but pared losses to close in the green.
   
• Today, the pair remains capped below 5-DMA at 123.81, intraday bias lower.
   
• We see a strong bearish bias and bearish 'Anti Gartley' pattern on daily charts keeps scope for downside.
   
• 121.89 (23.6% Fibo 109.205 to 125.814 rally) is next bear target. Violation there will see drop to 100-DMA at 121 and then 200-DMA at 119.31.
   
• We see bearish invalidation on close above 20-DMA at 124.39.

Support levels - 123, 122.55 (May 18 low), 121.89 (23.6% Fibo 109.205 to 125.814 rally), 121 (100-DMA)

Resistance levels - 123.84 (5-DMA), 124.39 (20-DMA), 125.31 (June 2 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-forms-bearish-Anti-Gartley-pattern-test-of-121-levels-likely-742334) has hit TP1.

Recommendation: Bias lower, stay short, hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -19.2266 (Neutral), while Hourly JPY Spot Index was at 138.599 (Bullish) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.