FxWirePro: EUR/JPY rejected at 200-DMA, dovish ECB comments weigh

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.18% lower on the day at 130.17 at around 09:10 GMT

Previous Week's High/ Low: 129.75/ 127.51

Previous Session's High/ Low: 130.56/ 129.65

Fundamental Overview:

The European Central Bank (ECB) Governing Council member Ignazio Visco said in an interview earlier on Thursday that the central bank maintain very favorable financing conditions for economy. 

Visco said that the central bank is unlikely to end tapering before 2023. The single currency under pressure after dovish ECB comments. 

Further, geopolitical concerns over Hong Kong, Iran join Evergrande updates to test risk appetite, keeping the yen supported. 

Technical Analysis:

- EUR/JPY finds major resistance at 200-DMA at 130.48

- Price action pierced into daily cloud on Wednesday's trade

- Volatility is high, the pair is trading above major moving averages

- Momentum is bullish, but overbought conditions can cause some pullbacks

Major Support and Resistance Levels:

Support - 129.96 (5-DMA), Resistance - 130.70 (Cloud top)

Summary: EUR/JPY pauses upside at 200-DMA resistance. Technical bias remains bullish, but breakout at 200-DMA required for upside continuation.