FxWirePro: EUR/JPY fails to clear major resistance at 122.40, on track to test 200-DMA, short rallies

• EUR/JPY attempts tepid recovery after Thursday's slump, but upside lacks traction.
   
• The pair has slipped below 5-DMA after ECB held rates at policy meeting on Thursday, traders reacted negatively to the ECB’s dovish move.
   
• The ECB reduced the pace of its asset purchases to EUR 60bln, although extended its asset buying program until at least Dec 2017.
   
• Technically, the major has failed to hold break above major resistance at 122.40.
   
• Indicators on intraday charts have turned bearish, we see scope for test of 200-DMA at 118.45.
   
• Support levels - 121.16 (10-DMA), 121, 119.49 (20-DMA), 118.45 (200-DMA)
   
• Resistance levels - 121.90 (5-DMA), 122, 122.30 (falling trendline)
   

Recommendation: Good to short rallies around 121.90, SL: 122.50, TP: 121/ 119.50/ 119/ 118.45
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FxWirePro's Hourly EUR Spot Index was at -101.658 (Highly bearish), while Hourly JPY Spot Index was at 12.0027 (Neutral) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex