FxWirePro: EUR/JPY snaps two-day upside, euro fails to benefit from upbeat Eurozone Retail Sales data

Chart - Courtesy Trading View 

EUR/JPY was trading 0.41% lower on the day at 146.25 at around 11:00 GMT.

The pair has snapped a two-day uptrend and has slipped lower to test 5-DMA support.

The single currency fails to benefit from upbeat Eurozone Retail Sales data.

Official figures released by Eurostat showed earlier on Tuesday, Eurozone’s Retail Sales rose by 0.4% MoM in September versus 0.4% expected and 0% last.

On an annualized basis, the bloc’s Retail Sales came in at -0.6% in September versus -1.4% recorded in August and -1.3% consensus forecast.

Technical analysis shows major and minor trend are bullish. But bearish RSI divergence raises scope for some weakness.

Support levels - 145.76 (5-DMA), 145.45 (21-EMA)

Resistance levels - 148.40 (Oct 21 high), 148.54 (Upper BB)

Summary: EUR/JPY finds strong support at 21-EMA, weakness only on break below. Resumption of upside will see test of fresh monthly highs above 148.40.