FxWirePro: EUR/JPY extends range trade for the 2nd straight session, break below 200H MA to see more downside

EUR/JPY chart - Trading View 

EUR/JPY was trading with modest losses on the day, extends sideways for the 2nd straight session.

The pair was trading 0.06% lower on the day at 133.37 at around 09:10 GMT after closing largely unchanged in the previous session.

The German IFO institute in its latest report released earlier on Wednesday, cut the country’s 2021 GDP growth forecast to 3.3% from 3.7% previous due to supply bottlenecks.

EUR/JPY slips lower from session highs at 133.58 and is on track to test 200H MA support at 133.27.

Major bias for the pair is bullish as evidenced by GMMA indicator, but bearish divergence on the daily charts keeps scope for weakness.

5-DMA is immediate support at 133.18, break below will see dip till 50-DMA at 132.06. Further weakness unlikely.

Major trend remains bullish and a 'Golden Cross' (bullish 50-SMA crossover on 200-SMA) on the weekly charts keeps downside limited.

On the flipside, failure to close below 5-DMA will see resumption of upside. Next major bull target lies at 88.6% Fib at 134.87.