FxWirePro: EUR/JPY fails at 21-EMA, scope for downside resumption

EUR/JPY chart - Trading View 

EUR/JPY dives over 4% to hit session lows at 117.95 before paring some losses to trade at 118.07 at around 09:55 GMT.

The single currency losing upside momentum, final March CPIs in Euroland, German IFO take center stage this week.

On the other side, reviving safe-haven demand amid persistent worries over the economic fallout from the coronavirus pandemic underpinned the JPY.

The pair looks set for downside resumption after rejection at 21-EMA, technical bias is also turning bearish.

RSI is turning south and holds below 50 mark. Stochastics are turning south. Price action has broken below 5-DMA.

Major trend in the pair is bearish and minor trend is turning bearish after 'Doji' formation in previous session's trade.

The pair currently holds strong support at 200H MA at 117.93. Break below will see further weakness.

Retrace above 5-DMA negates any bearish bias. Next major resistance lies at 55-EMA at 119.22.

Support levels - 117.93 (200H MA), 117, 116.52 (Lower BB)

Resistance levels - 118.33 (5-DMA), 118.57 (21-EMA), 119