- EUR/JPY is extending gains above 128 handle, up for the 4th straight session.
- The major has broken above 23.6% Fib and is on track to test 38.2% Fib at 129.54.
- Technical indicators are turning bullish. Stochs and RSI have rolled over from oversold levels and MACD is on verge on a bullish crossover.
- We evidence a bullish divergence on Stochs which keeps scope for upside.
- Italy's Five-Star Movement and the League finally reached a deal to form a government sending a wave of relief into stock markets.
- That said, the budget promises of Italy’s new government are set to re-shape the perceived risks associated with the euro.
- Next bull target is seen at 128.90 (21-EMA) ahead of 129.54 (38.2% Fib). Break above could see further upside.
- On the flipside, 5-DMA at 127.15 is immediate support. Close below to see resumption of weakness.
Support levels - 128, 127.66 (23.6% Fib), 127.15 (5-DMA)
Resistance levels - 128.90 (21-EMA), 129, 129.54 (38.2% Fib)
Recommendation: Good to go long on break above 23.6% Fib, SL: 127, TP: 128/ 128.35/ 129
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-breaks-above-5-DMA-bullish-divergence-raises-scope-for-further-upside-1344615) has hit TP1/2.
Recommendation: Book partial profits. Trail SL to 127.65. Hold for upside.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
