FxWirePro: EUR/JPY breaks above cloud and 110-EMA, stay long for 127.67

EUR/JPY chart - Trading View 

• The single currency caught a fresh bid wave in the European session upbeat Eurozone industrial production data.
   
• EUR/JPY broke consolidation mode to the upside, as the bulls break out of daily cloud.
   
• Eurozone industrial output fell less-than-expected, dropped by 0.2% m/m in February, against forecasts for a 0.6% drop.
   
• Data outweighed the reports that the German government is very likely to cut the 2019 German GDP growth forecast and bolstered the bullish tone around the shared currency.
   
• Technical studies support upside. RSI shows strength in th trend at 63 levels. Momentum with the bulls.
   
• Scope for test of 127.67 (converged 200-DMA and 61.8% Fib). Breakout at 200-DMA will see furthe gains. 
   
• Retrace below cloud could see some weakness. Dip till 124.30 likely.

Support levels - 126.20 (110-EMA), 125.62 (5-DMA), 124.77 (Apr 10 low)

Resistance levels - 127, 127.67 (converged 200-DMA and 61.8% Fib), 128

Recommendation: Stay long on dips, SL: 125.90, TP: 127/ 127.65/ 128

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