FxWirePro: EUR/JPY recovery capped at 21-EMA, trades rangebound ahead of key eurozone inflation data

EUR/JPY chart - Trading View 

• EUR/JPY rangebound ahead of key inflation data, technical bias is bearish.
   
• Recovery in the pair has been capped at 21-EMA which is stiff resistance currently at 125.14. 
   
• Today's release of the preliminary Euro-zone consumer inflation figures for April will influence sentiment surrounding the shared currency.
   
• Euro area inflation is expected to show that the Consumer Price Index on a yearly basis rose to 1.6% in April from 1.4% in March.
   
• Technical studies are biased lower. Price action below cloud and moving averages.
   
• Scope for dip till 123.85 (trendline support). Break below will target 61.8% Fib 122.14.
   
• 5-DMA is immediate resistance at 124.75. Break above 21-EMA negates bearish bias.

Support levels - 124.18 (38.2% Fib), 123.75 (trendline), 122.14 (61.8% Fib)

Resistance levels - 124.75 (5-DMA), 125, 125.14 (21-EMA)

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