FxWirePro: EUR/JPY recovery lacks traction, bears likely to target 61.8% Fib at 123.50

• EUR/JPY continues to make fresh 2018 lows. The major hit 124.62 levels on Tuesday's trade before paring some losses to close at 125.50.
   
• Euro has garnered some support across the board after upbeat German retail sales data.
   
• German retail sales surprised on the upside rising 1.2% m/m while increasing 2.3% y/y in April in real terms.
   
• Markets now await German inflation and unemployment data due later today for further impetus.
   
• Political uncertainty regarding Italy and the rising Italian short-term debt yields likely to keep lid on the Euro gains.
   
• Technical studies also show that the recovery lacks traction, keeps scope for resumption of weakness.
   
• On the weekly charts the pair has broken below 110-EMA at 128.43. Next major bear target lies at 123.50 (61.8% Fib).
   
• 1H 55-EMA is immediate resistance at 126.34. Break above could see upside till 5-DMA at 126.84

Support levels - 126.17 (50% Fib), 126, 125, 124.74 (June 27 low)

Resistance levels - 126.87 (5-DMA), 127, 127.21 (1H 110-EMA), 128

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-Trade-Idea-1332757) has hit all targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -43.8929 (Neutral), while Hourly JPY Spot Index was at 106.546 (Bullish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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