FxWirePro: EUR/JPY rangebound below 21-EMA, outlook bearish

EUR/JPY chart - Trading View 

EUR/JPY is extending range trade below 21-EMA, near-term outlook remains bearish.

The pair was trading 0.23% lower on the day at 118.07 at 10:38 GMT, after closing 0.33% higher in the previous session.

Euro dampened after the ECB announced a €750 billion QE programme late on Wednesday, expected to run at least until year-end.

Poor data which showed preliminary German IFO Business Climate dropped to 87.7 for the month of March, the lowest level since August 2009 added to the downside pressure.

Also, data released earlier today showed Eurozone Current Account surplus widened to €34.7 billion during January.

Price action has failed to break above 200-DMA. Major and minor trend for the pair are bearish. 

Weekly cloud and 21W EMA offer stiff resistance on the upside. Momentum is bearish and RSI is below 50.

Resumption of downside likely. Next bear target lies at 116 (trendline) ahead of 78.6% Fib at 115.26.

Support levels - 116 (trendline), 115.26 (78.6% Fib)

Resistance levels - 118.87 (21-EMA), 120.05 (200-DMA)