FxWirePro: EUR/JPY hovers around 21-EMA, focus on EMU’s Retail Sales data for impetus

EUR/JPY chart - Trading View 

EUR/JPY loses ground for the fourth consecutive session on Thursday and hovers around the 21-EMA support area.

The pair was trading 0.17% lower on the day at 126.18 at around 08:55 GMT, bias remains neutral.

Selling pressure around the single currency remains unabated as markets await the crucial EMU Retail Sales data.

Euro area December Retail Sales are expected to have risen 1.6% month-on-month and 0.3% year-on-year from -6.1% and -2.9% in the previous months respectively.

Any miss on expectations could weigh heavily on the common currency which already remains depressed as investors keep favouring the dollar.

Intraday charts paint a bearish picture for the pair. Price action has slipped below 200H MA and is trading below 21-EMA.

Daily cloud is major support for the pair. Break into cloud will drag prices lower. Major trend still remains bullish, so downside maybe shallow.

55-EMA is next major support at 125.78. Break below will see test of trendline support at 125.40 ahead of 110-EMA at 124.95.