FxWirePro: EUR/JPY forms bearish 'Anti Gartley' pattern, test of 121 levels likely

• Data released on Tuesday showed that Eurozone retail PMI data reflected slightly slower growth in activity in April (52.0 vs. 52.7 – driven mainly by weaker German and Italian contributions).
   
• Also,  Eurozone retail sales rose 0.1% in Apr, weaker than forecast, and Mar data was revised lower.
   
• Banking woes in the Eurozone Periphery nations have made a comeback which could keep the Yen well bid.
   
• Technically, EUR/JPY is trading with a strong bearish bias. Scope for further downside.
   
• We see a bearish 'Anti Gartley' pattern on daily charts. RSI and Stochs are biased lower. 
   
• Bollinger Bands are widening and we see 23.6% Fibo (109.205 to 125.814 rally) at 121.89 as initial bear target.
   
• Violation there will see drop to 100-DMA at 121 and then 200-DMA at 119.31. We see bearish invalidation on close above 20-DMA at 124.39.
   
• Focus now on ECB policy meeting which could provide further impetus to the pair.

Support levels: 122.55 (May 18 low), 121.89 (23.6% Fibo 109.205 to 125.814 rally), 121 (100-DMA), 119.31 (200-DMA)

Resistance levels: 124.09 (5-DMA), 124.39 (20-DMA), 125.31 (June 2 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral               Neutral    
  
4H          Neutral               Neutral    
  
1D          Bearish               Neutral
       
1W         Neutral                Neutral      

Recommendation: Good to go short around 123.50 levels, SL: 124.10, TP: 123/ 122.55/ 121.90

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -42.8335 (Neutral), while Hourly JPY Spot Index was at 143.418 (Bullish) at 0245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.