FxWirePro: EUR/JPY slumps below 38.2% Fib, euro under pressure ahead of German inflation data

Chart - Courtesy Trading View 

EUR/JPY was trading 0.74% lower on the day at 138.35 at around 05:20 GMT, bias bearish.

The single currency remains under pressure ahead of German inflation data. The pair is extending bearish streak for the the fourth consecutive session.

Price action is extending break below 200-DMA and has slipped below 38.2% Fib retracement at 136.39.

Momentum is with the bears. GMMA indicator shows major and minor trend are bearish. Volatility is high and rising.

MACD and ADX support downside in the pair. Recovery attempts have been capped at daily cloud, Chikou span is biased lower.

Investors await the release of the Eurozone Harmonized Index of Consumer Prices (HICP) data, due at 13:00 GMT later in the day for fresh impetus.

Forecasts suggest German HICP (Dec) will escalate to 11.8% vs. the former release of 11.3%. 

Major Support Levels: 

S1: 137.96 (Lower BB)

S2: 136.39 (50% Fib)

Major Resistance Levels: 

R1: 139.23 (38.2% Fib)

R2: 140.44 (200-DMA)

Summary: EUR/JPY refreshes multi-month lows. Outlook is bearish, scope for test of 50% Fib at 136.39.