FxWirePro: EUR/JPY slips below 21-EMA, 23.6% Fib retracement in sight

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.18% lower on the day at 141.33 at around 06:00 GMT.

Previous Week's High/ Low: 144.08/ 141.18

Previous Session's High/ Low: 142.21/ 141.18

Fundamental Overview:

Escalating geopolitical tensions between Japan and North Korea keep sentiment sour, supporting the Japanese yen. 

The European Central Bank’s (ECB) Monetary Policy Meeting accounts last week mentioned that some officials preferred a rate hike of 50 bps, versus the 75 bps announced.

Further, downbeat prints of the Eurozone Retail Sales and German statistics along with fears of economic slowdown in the bloc due to the looming energy crisis keep pressure on the euro.

Technical Analysis:

- EUR/JPY breaks below 21-EMA, upside remains capped at 20-DMA

- Momentum is turning bearish, Stochs and RSI are biased lower

- Price action has slipped below 200H MA

- GMMA indicator shows bearish shift on the intraday charts

Major Support and Resistance Levels:

Support - 140.62 (23.6% Fib), Resistance - 141.78 (200H MA)

Summary: EUR/JPY pivotal at 21-EMA support. Technical bias is bearish. The pair is on track to test 23.6% Fib replacement at 140.62.