FxWirePro: EUR/JPY extends weakness below 5-DMA, eurozone CPI fails to impress

• EUR/JPY slumps, down 0.66% at the time of writing as eurozone CPI fails to impress.
   
• The pair has slipped below 130 handle and was currently trading at 129.75, bias lower.
   
• Upside was rejected at 50-DMA on May 14th trade, we see upside only on break above.
   
• Technical indicators are biased lower, RSI biased south, MACD below zero and we see -ve DMI dominance.
   
• Next bear target lies at 129.35 (major trendline). Break below will see test of 38.2% Fib at 128.85.
   
• On the flipside, we see major resistance at 131.27 (nearly confirmed 50 and 20 DMAs). Upside only on break above.

Support levels - 129.35 (trendline), 129, 128.85 (38.2% Fib)

Resistance levels - 130, 130.43 (5-DMA), 131.27 (nearly confirmed 50 and 20 DMAs)

Recommendation: Good to go short on rallies around 130, SL: 130.50, TP: 129.35/ 129/ 128.85

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