EUR/JPY recovery capped at 123 handle, bias remains bearish
The pair has resumed weakness and is trading 0.19% lower on the day at 122.50 at 0600 GMT.
Technical analysis supports weakness in the pair, scope for test of 122 (trendline support).
Focus now on final Eurozone inflation reading for April. Broader market sentiment could also influence price action.
The bid tone around the EUR may strengthen in CPI prints above the preliminary estimate of 0.7% month-on-month growth.
Resumption of weakness will see next major support at 122 (trendline) ahead of 120.68 (78.6% Fib).
5-DMA is immediate resistance at 122.678. Break above 21-EMA will see gains till 110-EMA.