FxWirePro: EUR/JPY extends weakness below 38.2% Fib, bias bearish

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.09% lower on the day at 136.18 at around 03:15 GMT

Previous Week's High/ Low: 137.96/ 134.94

Previous Session's High/ Low: 137.06/ 135.72

Fundamental Overview:

German Manufacturing PMI rose to 49.8 versus 48.2 expected and 49.3 prior while the activity index for the bloc beat 49.00 market consensus with 49.7 figure compared with a prior reading of  49.8. 

Germany’s Services PMI slipped to 48.2 from 49.7 previous readouts and 49.0 expected whereas the Eurozone Services gauge fell to 50.2 versus 50.5 market forecasts and 51.2 prior. 

Further, the flash reading of the Euro area Consumer Confidence Indicator rose to -24.9 in August from July's record low of -27, beating market expectation of -28.

Technical Analysis:

- EUR/JPY is extending weakness below 38.2% Fib

- Momentum is bearish, Stochs and RSI are biased lower, RSI is below the 50 mark

- ADX supports downside and MACD is on verge of bearish crossover on signal line

- Price action is below cloud and Chikou span is biased lower

Major Support and Resistance Levels:

Support - 135.07 (Lower BB), Resistance - 137.13 (21-EMA)

Summary: EUR/JPY trades with a bearish bias. Scope for dip till 200-DMA at 134.15. Bearish invalidation only above 21-EMA.