FxWirePro: EUR/JPY takes a breather after 6 straight sessions of weakness, bias strongly bearish

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.12% higher on the day at 117.23 at around 10:10 GMT, bias remains bearish.

The pair in a phase of bearish consolidation, takes a brief pause after 6 straight sessions of downside.

Technical indicators show no major signs of reversal. 'Death cross' on the daily charts to plummet prices further.

Data released earlier today showed dismal numbers from the services sector in the eurozone. Consultancy IHS Markit revised down its flash PMIs across the board as a consequence.

Italy services PMI fell to 17.4, from 52.1 in February, the lowest number Markit has ever reported for any of its PMIs.

The overall eurozone services PMI fell to 26.4, from 52.6. European indices slumped in the aftermath. 

EUR/JPY is down 2.55% for the week and is on track to test major trendline support at 116 mark. Breach below could open downside for the pair.

That said, lingering concerns over the Japanese outbreak of COVID-19 would potentially jeopardise the yen's safe-haven allure and limit downside in the pair. 

Support levels - 116 (trendline), 115.26 (78.6% Fib), 112.43 (88.6% Fib)

Resistance levels - 117.87 (5-DMA), 118.81 (21-EMA), 119.11 (200H MA)