EUR/JPY bears are lurking, eye a test to the 129.50s

• EUR/JPY bears are testing below dynamic hourly support, greenback battles on and the euro goes soft.
• Bears will seek to target the 129.50s as a familiar support zone. 

At the time of writing, in printing the low of the day of 129.62 so far, EUR/JPY is trading on the offer at 129.76, below the highs of the day at 129.82 

The cross is under pressure following a weak performance on Wall Street due to softer than expected US manufacturing data and lingering supply constraints that added some caution.

 The US July manufacturing ISM dipped to 59.5 (exp: 61.0, prev: 60.6). While disappointing, and possibly reflecting supply chain difficulties, there were still positives to take away. 

The data sank US rates and real yields moved to a record low, both of which hurt the greenback.

As a consequence, the cross was left trading in consolidation within a sideways daily range between 129.60 and 130.42.

EUR/JPY technical analysis

Meanwhile, Asia is pretty static thus far but there has been a recent breach of dynamic support on the hourly time frame as follows:

From a 15-min perspective, the price action is bearish as the moving averages cross over to the downside, acting as resistance:

However, the bears are not out of the woods yet until a clean break of 129.70 occurs.