FxWirePro: EUR/JPY holds gains around 121 handle, focus on eurozone inflation data

• EUR/JPY finds support from rebound staged by USD/JPY, halts back-to-back sessions of losses.
   
• The pair edges higher from multi-week lows at 120.54 (on Jan 17th) to currently hover around handle.
   
• Price action has slipped below 50-DMA, we see scope for test of 200-DMA at 118 levels.
   
• Upside capped by 5-DMA at 121.21, slight upside only on decisive close above.
   
• Focus now on remains the inflation figures due on the cards from Germany, Eurozone today.
   
• The key event of the week for the is likely to be the European Central Bank on Thursday. 
   
• The following press conference from President Mario Draghi will be closely watched.
   

TIME  TREND INDEX  OB/OS INDEX     

1H         Bullish           Neutral    
4H         Bullish           Neutral        
1D         Bearish          Neutral        
1W        Bearish          Neutral  

Support levels - 120.58 (23.6% Fib 109.20 to 124.09 rally), 120, 119.77 (cloud top)

Resistance levels - 121.24 (5-DMA), 122.41 (Jan 13 high), 123, 123.72 (Jan 9 high)

Recommendation: Good to go short on rallies around 121.10/20,  SL: 122, TP: 120.60/ 120/ 119.75