FxWirePro: EUR/JPY struggles at 127 handle, good to sell rallies

• EUR/JPY struggles to extend gains beyond strong trendline resistance at 127.25, has slipped lower to currently trade at 127 levels.
   
• Pair is struggling to hold above 127 handle, weakness in the pair below 127 levels, tests of 126 then likely.
   
• Yen remains supported across the board as overnight rally in the yen versus the US dollar continues, buoying other yen crosses. 
   
• The greenback was heavily sold-off across the board on the dovish remarks by Fed Chair Yellen.
   
• However, weak Japanese industrial production data dampened investors’ sentiment, could restrict further yen gains.
   
• Japan’s industrial production dropped the most since 2011, coming in at 6.2% m/m in February, as compared to a 5.8% decline forecast by markets.
   
• Techs on the 4-hourly charts indicate further downside, Stochs have rolled over from overbought and RSI has started retrace from near 70 levels.
   
• Immediate resistance is seen at 127.17 ((50% Fib retrace of 132.287 to 122.058 fall) and then at 127.45 (trendline).
   
• On the downside supports are located at 126.72 (5-DMA) and further below at 126.27 (10-DMA).
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Recommendation: Sell rallies around 127.10, SL: 127.50, TP: 126.70/126.20