FxWirePro: EUR/JPY consolidates break below 200-DMA, outlook bearish

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.08% higher on the day at 128.72 at around 09:45 GMT.

A spinning formation seen on the daily chart, as the pair consolidates previous session's break below 200-DMA.

On the data front, Eurozone economy rebounded 2.0% on quarter in Q2, meeting 2.0% expected and 2.0% prior, the second reading confirmed on Tuesday.

On an annualized basis, the bloc’s GDP rate expanded by 13.6% in Q2 vs. 13.7% booked in the first estimate while missing 13.7% expectations.

Separately, Eurozone's Preliminary Employment Change matched estimated with 0.5% in Q2 when compared to a reading of -0.3% in Q1.

The single currency largely unfazed by mixed eurozone data. Risk-off lends support to the Japanese yen, weighing on the pair.

Technical bias is also bearish. GMMA shows major and minor trend are bearish. Momentum is bearish and volatility is rising.

Support levels - 128.05 (55-week EMA), 127.87 (50% Fib), 126.39 (61.8% Fib)

Resistance levels - 128.99 (200-DMA), 129.34 (38.2% Fib), 129.63 (21-EMA)

Summary: EUR/JPY close below 200-DMA on Monday's trade has raised scope for further downside. The pair is poised to test 38.2% Fib at 127.87. Further weakness will drag the pair lower to test 61.8% Fib at 126.39.