FxWirePro: EUR/JPY extends weakness for the 5th straight session, slips below 130 handle

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.36% lower on the day at 129.96 at around 09:40 GMT, outlook bearish.

The spread of the new Delta variant heightens fears that the economic re-opening in the eurozone could be delayed.

Later in the euro area, the European Central Bank (ECB) will release its Accounts from the latest meeting. 

Focus on Lagarde's conference on the results of the ECB strategy review. Reports suggest the ECB has agreed on a new inflation goal.

According to reports, the ECB policymakers have agreed to raise their inflation goal to 2% and allow room to overshoot it when needed.

Price action is extending break below daily cloud and 110-EMA, slips below 130 handle, scope for further downside.

The pair has retraced below 200-month MA. GMMA indicator shows bearish trend shift on the daily charts.

Momentum is strongly bearish and that combined with rising volatility is likely to drag prices lower. 

Bears target 38.2% Fib at 129.34 ahead of 200-DMA at 128.12. 110-EMA is immediate resistance at 130.57. Bearish invalidation only above daily cloud.