FxWirePro: EUR/JPY halts upside, back-to-back gravestone dojis raise downside risk

EUR/JPY chart - Trading View 

EUR/JPY was trading in a narrow range with session high at 132.11 and low at 131.86 at around 06:30 GMT.

The single currency remained subdued on mixed Eurozone data on Tuesday. The pair formed successive gravestone dojis on the daily candles denting upside in the pair.

Data released on Tuesday showed German’s ZEW Economic Sentiment rose to 84.4 from 70.7 beating the market expectations at 72. 

Further, the Eurozone Economic sentiment Index edged higher at 84.0 against the market consensus of 65.0. 

Italian Industrial Production fell by 0.1% in March against the market expectations of 0.4%.  

Focus will be on the release of the Eurozone March industrial production figures for impetus. The EU Commission will release its spring economic forecast update.

Investor focus will be on the updated fiscal projections and any preliminary assessments of the countries recovery plans submitted at the end of April.

Technical bias for the pair remains bullish. But back-to-back gravestone dojis raise downside risk. 

The pair is holding immediate support at 5-DMA at 131.90. Break below will see dip till 21-EMA at 131.17.