FxWirePro: EUR/JPY retraces below 200-DMA, euro extends weakness ahead of German Prelim CPI

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.71% lower on the day at 119.39 at around 10:25 GMT, bias is turning bearish.

The pair has retraced below 200-DMA and has failed to extend cloud breakout.

The single currency largely ignored ECB Vice President Luis De Guindos's remarks that the central bank will do everything possible to defend the euro.

Focus now on the  Harmonized German Preliminary Consumer Price Index (CPI) data, up for release later this session at 1200 GMT. 

The headline CPI is expected to print at +0.1% MoM and the yearly rate is seen lower at 1.4% in March.

Upside in the pair looks bleak as price has retraced below 200-DMA. Short-term moving averages in the GMMA indicator are biased lower, suggesting weakness in the near-term.

RSI has slipped below 50 and is biased lower and Stochs are on verge of rollover from overbought levels.

The pair is currently holding support at 21-EMA, break below will see resumption of weakness. Dip till trendline support at 116 likely.

Bearish invalidation only on decisive breakout above 200-DMA

Support levels - 119.04 (20-DMA), 116 (Trendline)

Resistance levels - 120.01 (200-DMA), 120.45 (50W MA)