FxWirePro: EUR/JPY comatose around 55-EMA, focus on Eurozone PMI data for further impetus

EUR/JPY chart on Trading View used for analysis

• EUR/JPY is trading in an extremely narrow range, capped below 55-EMA resistance.
   
• The pair is grinding higher, holds above 21-EMA. Major trend is bearish, but intraday bias has turned slightly bullish.
   
• Stochs, RSI and MACD on the daily charts support upside. Price action on the 4 hourly chart has broken above 4H 200 SMA. 
   
• Break above 55-EMA raises scope for test of 110-EMA at 127.30 ahead of 200-DMA at 128.58.
   
• On the flipside, 5-DMA is immediate support at 125.30. Break below 125 handle to see downside resumption. 
   
• Markit is scheduled to publish its Services PMI reports for the euro area and Germany as well as the U.S. later in the day. 
   
• If the PMI data from the eurozone disappoint, we could see the shared currency come under a renewed pressure.

Support levels - 125.31 (5-DMA), 125.09 (21-EMA), 124.36 (Feb 1st low)

Resistance levels - 126.11 (55-EMA), 127.30 (110-EMA), 128.58 (200-DMA)

Recommendation: Watch out for break above 55-EMA to go long, target 127/ 127.30/ 128

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