FxWirePro: EUR/JPY slips lower for the second straight session, eyes 21-EMA support

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.28% lower on the day at 145.96 at around 04:40 GMT.

Previous Week's High/ Low: 147.72/ 143.72

Previous Session's High/ Low: 147.11/ 145.96

Fundamental Overview:

Hawkish comments from the European Central Bank (ECB) officials help limit losses in the pair. 

ECB policymaker and Bundesbank President Joachim Nagel was quoted saying by a German newspaper that the central bank has a long way to go before it is done with interest rate hikes.

Further, ECB member Pablo Hernandez de Cos mentioned that "nobody knows how far we have to raise interest rates." 

Earlier on Tuesday, ECB President Christine Lagarde said that the possibility of a recession has increased and also added that the central bank “hasn't reached the destination on rates yet.”

Adding to the above, headlines from China appeared to have recently favored the market’s sentiment, lifting the pair off from session lows. 

Technical Analysis:

- EUR/JPY has paused a 5-week bullish streak, but outlook remains bullish

- Bearish RSI divergence on the daily charts keeps scope for more downside

- Upside remains capped at 5-DMA which is biased lower

- Price action is extending weakness after Gravestone Doji formation on Monday's candle

Major Support and Resistance Levels:

Support - 145.28 (21-EMA), Resistance - 146.36 (5-DMA)

Summary: EUR/JPY trades with a bearish bias. The pair is on track to test 21-EMA at 145.28.