FxWirePro: EUR/JPY struggles to extend bounce off 200-DMA support

Chart - Courtesy Trading View 

EUR/JPY was trading 0.07% higher on the day at 131.14 at around 1700 GMT.

The pair has bounced off daily cloud and 200-DMA support, retrace below will see downside resumption.

Stochs are on verge of bearish rollover from overbought levels, while RSI holds above 50 mark.

Data from the eurozone docket revealed the Euro area Industrial Production rose 2.3% on its monthly reading but fell 1.5% on an annual reading.

Upbeat comments from ECB's Villeroy failed to impress. Villeroy said that ECB will do what is necessary to achieve 2% inflation. 

He added that the French economy is overall resilient despite Omicron.

Summary: Major trend for EUR/JPY is bullish, price action continues to hold above 200H MA. The pair has formed an inverted hammer on the daily charts and 5-DMA has turned, adding to near-term downside.

5-DMA is immediate support at 130.91. Break below will see dip till 200-DMA.