FxWirePro: EUR/JPY struggles at 55-EMA, outlook remains bearish

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.34% higher on the day at 134.92 at around 08:45 GMT

Previous Week's High/ Low: 138.31/ 132.65

Previous Session's High/ Low: 134.75/ 133.09

Fundamental Overview:

Market sentiment sours after China reported downbeat figures for April month’s Retail Sales and Industrial Production.

Eurozone’s quarterly economic forecasts will be keenly watched amid Russia-Ukraine crisis.

Headlines suggesting Germany’s firmer view of banning oil imports from Russia, as well as worsening military actions in Donbas, weigh on the risk appetite and dent the single currency.

Technical Analysis:

- EUR/JPY has retraced from session lows at 133.74

- Price action is extending bounce off daily cloud and 110-EMA supports

- The pair has edged above 55-EMA and is on track to test 5-DMA

- Major trend is neutral, but decisive break above 200H MA could change near-term dynamics

Major Support and Resistance Levels:

Support - 133.85 (Lower BB), 133.07 (110-EMA)

Resistance - 135.29 (5-DMA), 136.09 (21-EMA)

Summary: EUR/JPY upside lacks traction. Watch out for break below daily cloud for downside continuation.