FxWirePro: EUR/JPY stages a modest recovery from multi-week lows, outlook remains weak

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.19% higher on the day at 128.67 at around 07:15 GMT.

The pair has ignored Gravestone Doji formation on the previous session's candle and is staging a modest recovery.

Renewed COVID-19 jitters should further collaborate towards capping the upside for the major.

Further, escalation of diplomatic tensions between China and Western countries is likely to keep safe-haven bids for the yen and weighing on the pair.

Concerns that pandemic-related restrictions could derail the fragile Eurozone economic recovery amid the slow pace of vaccinations also weigh on the pair.

Focus now on the release of the German Ifo survey, which is expected to show an improvement in business morale.

EUR/JPY has been rejected at 200 month MA, minor recovery attempts are capped below 21-EMA. 

Outlook for the pair is bearish. Scope for further weakness, next major support lies at daily cloud and 110-EMA at 126.76.