EUR/JPY chart on Trading View used for analysis
- EUR/JPY is trading at 127.08 at 0640 GMT, up 0.35% at the time of writing.
- The pair has shown a break above 110-EMA and we see scope for upside till 200-DMA.
- Positive comments from Fed's Powell and upbeat data concerning China Caixin manufacturing PMI triggered risk-on sentiment.
- Technical studies on the daily charts are biased higher. Momentum with the bulls.
- Failure to close above 110-EMA could see weakness till 55-EMA at 125.81.
- Focus on Eurozone Sentix Index and PPI data for further impetus.
Support levels - 126.78 (110-EMA), 126.39 (5-DMA), 125.81 (55-EMA)
Resistance levels - 128.11 (200-DMA), 128.38 (Dec 19, 20 high), 129
Recommendation: Good to stay long on dips, SL: 126.70, TP: 128/ 128.35
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
