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FxWirePro: EUR/JPY pauses recovery ahead of ECB policy meet, 'Gravestone Doji' raises scope for weakness

EUR/JPY chart - Trading View 

EUR/JPY trades 0.22% lower on the day at 121.43 at 05:50 GMT.

The single currency largely unimpressed by upbeat German factory orders which rose 0.3% m/m in April.

Euro depressed ahead of ECB policy meeting due later today at 11:45 GMT. 

The central bank is expected to keep rates unchanged. Focus shall be on forward guidance and TLTRO 3.

The pair has paused three straight sessions of gains. 'Gravestone Doji' formation on the daily charts raises scope for weakness.

Price action below cloud and major moving averages, hovers around 5-DMA support at 121.45.

Major trend is bearish, likelihood of downside resumption on a decisive break below 5-DMA. 

Next major support lies at 120.68 (converged 78.6% Fib and trendline). Violation there will accentuate weakness.

21-EMA is strong resistance at 122.43. Break above will see gains till 55-EMA. Bearish invalidation only above 200-DMA.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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