FxWirePro: EUR/JPY snaps four-day bearish streak, bias remains bearish

Chart - Courtesy Trading View 

EUR/JPY was trading 0.41% higher on the day at 138.71 at around 13:15 GMT. Upbeat German and eurozone services PMIs support the euro.

Data released earlier on Wednesday showed the German Services PMI printed at 49.1 while that for the Euro Zone was confirmed at 49.8. Data beating forecasts at 49 and 49.1 in that order.

Reports suggested that price pressures remained elevated but retreated further from their recent peaks. 

The EUR/JPY pair has snapped a four-day bearish streak and edged higher from 3-month lows at 137.38.

Price action has formed double bottom, raising scope for some consolidation or pullback from lows.

Momentum is bearish and volatility is high and rising. Major moving averages are biased lower. 

Stochastics oscillator is at oversold levels, but no major signs of reversal seen. MACD and ADX support downside in the pair.

Support levels - 137.47 (Lower BB), 136.39 (50% Fib)

Resistance levels - 139.23 (38.2% Fib), 139.72 (5-DMA)

Summary: EUR/JPY recovery lacks traction. Major trend remains bearish. Resumption of downside will see dip till 50% Fib at 136.39. Bearish invalidation only above 200-DMA.