FxWirePro: EUR/JPY breaks below 38.2% Fib, bears target 200-DMA at 128.33

EUR/JPY chart - Trading View 

EUR/JPY plunges over 0.60% on the day and was trading at 129.11 at around 08:50 GMT.

Market mood turns sour as spread of the Delta covid strain raises concerns about the nascent recovery.

The pair has breached below 38.2% Fib retracement support and is on track for further downside.

Price action is extending weakness for the 4th consecutive week, momentum with the bears.

Deteriorating market sentiment keeps safe-haven demand for the yen, weighing down the pair.

Traders await European Central Bank (ECB) policy meet. ECB's forward guidance will be the key amid fresh inflation target. 

There is a potential for intermediate pullbacks, due to the ECB’s economic optimism. However, major trend is turning bearish.

EUR/JPY is on track to test 200-DMA at 128.33. Break below will open downside. Bearish invalidation only above daily cloud.