FxWirePro: EUR/JPY recovery rejected at 200H MA, dovish Lagarde's comments dent euro

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.24% lower on the day at 130.53 at around 12:35 GMT, after closing 0.09% higher in the previous session.

The single currency was dented after European Central Bank President Christine Lagarde once again pours cold waters on the central bank's hawkish expectations. 

Lagarde urged leaders to keep their fiscal purse strings loose, warning that a premature brake on stimulus measures could derail a nascent recovery.

Risk aversion dominates financial markets as Delta variant concerns intensify, boosting the yen's safe-haven appeal and dragging the pair lower.

Technical bias for the pair is bearish. GMMA indicator shows minor trend is bearish while major trend is turning bearish.

Minor recovery attempts have been rejected at 200H MA, scope for further weakness. Bearish divergence and break below cloud add to the downside bias.

Price action hovers around 5-DMA at 130.48, scope for dip till 38.2% Fib at 129.34. Bearish invalidation only above daily cloud.