FxWirePro: EUR/JPY finds strong resistance at 124.35, near-term weakness to continue

EUR/JPY chart on Trading View used for analysis

• EUR/JPY trades 0.19% lower on the day at 124 handle at 1045 GMT, bias bearish.
   
• The pair is in a downtrend and has breached major trendline support and 200-W SMA on the weekly charts.
   
• The common currency little changed after Euro-zone CPI matches flash estimates.
   
• Euro on the defensive and continues to be weighed down by concerns over a slowdown in the Euro-zone.
   
• Volatility is on the rise and we see scope for test of 61.8% fib at 120.01 level.
   
• Upside finds stiff resistance at major trendline at 124.35. Breach above could see minor upside.

Support levels - 123.35 (50% Fib), 123, 120.01 (61.8% Fib)

Resistance levels - 124, 124.16 (5-DMA), 124.35 (trendline resistance)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.