FxWirePro: EUR/JPY extends break above 200W MA, outlook bullish

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.38% higher on the day after closing 0.79% higher in the previous session.

The pair has likely ended consolidation and is set to extend breakout at 200W MA.

Price action has slipped slightly lower from multi-month highs at 126.94 (highest since March 2019), outlook remains bullish.

Data released by Eurostat showed Eurozone flash CPI came in at -0.2% y/y in August, meeting expectations of +0.2% and compared to a prior reading of +0.4%.

Further, the core inflation edged higher to +0.4% compared to +0.9% expectations and +1.2% previous.

The latest German government economic forecasts for this year were revised up. The GDP is now estimate at -5.8% vs. the previous forecast of -6.3%.

Euro extending gains across the board. Technical studies also support gains. Scope for test of 61.8% Fib at 128.67.

Support levels - 126 (5-DMA), 125.34 (21-EMA), 125.05 (200W MA)

Resistance levels - 127.20 (Trendline), 128, 128.67 (61.8% Fib)