FxWirePro: EUR/JPY opens the week on a bearish note, slips below 130 handle

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.23% lower on the day at 129.99 at around 05:40 GMT, bias is turning bearish.

The pair closed 0.13% lower in the previous week and is showing signs of further downside.

Data released earlier on Monday showed Japan’s trade numbers flash strong signals for March and Industrial Production also improved from the initial estimations for February.

Easing concerns over EU's covid vaccines rollout support the single currency as the pair edges higher from session lows at 129.69.

Technical indicators for the pair are turning bearish. MACD is showing a bearish crossover on signal line.

5-DMA has turned and RSI is biased lower. Stochs are on verge of bearish rollover from overbought levels.

Major Support Levels: 

S1: 129.91 (21-EMA)

S2: 128.95 (55-EMA)

S3: 128.54 (23.6% Fib)

Major Resistance Levels: 

R1: 130.30 (200-month MA)

R2: 130.68 (Apr 7 high)

R3: 131 (Psychological mark)

Summary: EUR/JPY upside has fizzled out below the 131 mark. The pair is currently holding support at 21-EMA at 129.91. Decisive break below 21-EMA will drag the pair lower. Scope for test of 55-EMA at 128.95 ahead of 23.6% Fib at 128.54.