FxWirePro: EUR/JPY extends gains above 110-EMA, on track to test 200-DMA at 119.24

EUR/JPY chart - Trading View 

EUR/JPY extends gains above 110-EMA resistance and was trading 0.18% higher on the day at 118.75 at around 06:00 GMT.

The pair is extending upside for the 4th straight session, is on track to test 200-DMA at 119.24.

The single currency remains underpinned by hopes of the joint fiscal response to stimulate the Euro area recovery process.

French Finance Minister Bruno Le Maire said earlier today that he hopes a deal on the European Union (EU) 750 billion euro plan can be reached in the coming weeks.

Break above daily cloud raises scope for further gains. Technical indicators are bullishly aligned. Scope for test of 200-DMA at 119.24. 

Next bull target above 200-DMA lies at 61.8% Fib at 119.63 ahead of 76.4% Fib at 120.87.

On the flipside, failure to hold above 110-EMA will see weakness. Retrace below 55-EMA negates near term bullish bias.

Support levels - 118.40 (110-EMA), 118.00 (5-DMA), 117.55 (55-EMA)

Resistance levels - 119.24 (200-DMA), 119.63 (61.8% Fib), 120.87 (76.4% Fib)