FxWirePro: EUR/JPY halts recovery at 5-DMA, break below cloud to see further downside

EUR/JPY chart - Trading View 

• EUR/JPY is trading 0.11% lower on the day at 124.49 at 1055 GMT, bias remains bearish.
   
• Upside is for now capped at 5-DMA and daily cloud top. Break above will see minor gains. 
   
• Decisive breakout at 110-EMA required for any meaningful upside. 
   
• The pair finds strong trendline support at 123.85. Break below to see further downside.
   
• ECB’s M.Draghi in his speech earlier today reiterated that risks for the outlook in the region keep pointing to the downside.
   
• The single currency under pressure as yields of the 10-year Bund dropped to fresh lows near -0.05%, area last visited in October 2017.
   
• Later in the day, the ECB will remain in centre stage in light of speeches by Board members S.Lautenschlaeger, E.Nowotny, P.Praet, L.De Guindos and Y.Mersch. 
   
• Decisive break below cloud and trendline support at 123.85 to see dip till 123.16 and then .122.14.

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