FxWirePro: EUR/JPY erases early gains, more weakness likely as oscillators cool from overbought levels

Chart - Courtesy Trading View 

EUR/JPY was trading 0.10% lower on the day at 135.15 at around 08:00 GMT.

The pair has erased early gains and slipped lower from session highs at 135.68.

Price action has slipped below 5-DMA which has now turned south, more weakness likely.

Stochs are showing a bearish rollover from overbought levels and RSI is biased lower.

The pair is trading just above 200H MA support on the intraday charts, break below will drag the pair lower. 

The single currency weighed down by talk of fresh Russia sanctions. Dismal eurozone sentix index reading add to the weakness.

Data released earlier on Monday showed Eurozone’s investor sentiment kept deteriorating for the fourth straight month.

Eurozone Sentix Investor Confidence smashed to -18 in April vs. -9.2 expected, pointing to a possible recession in the second quarter.

Technical analysis also shows some weakness as oscillators roll back from overbought levels.

The pair is holding above 200H MA support, break below will see drag lower. Dip till 21-EMA at 132.88 likely.