FxWirePro: EUR/JPY extends sideways grind above cloud support, ZEW Economic Sentiment for Germany and eurozone in focus for further direction

EUR/JPY chart on Trading View used for analysis

• EUR/JPY is trading rangebound on the day, with session highs at 125.14 and lows at 124.76.
   
• The pair is extending sideways grind above cloud which offers strong support at 124.48.
   
• Technical indicators do not provide a clear directional bias. Major trend however remains bearish.
   
• Focus now on the ZEW Economic Sentiment for Germany and eurozone scheduled to be published later today.
   
• Analysts expect the index for the eurozone to improve to -18.2 in February from -20.9 in January. 
   
• A miss on expectations is likely to weigh on the shared currency and downside in the pair could gather momentum.
   
• On the otherside, upbeat reading could see test of 50-DMA at 125.45. Break above 50-DMA eyes 38.2% Fib at 125.96.

Support levels - 124.48 (cloud top), 124.22 (Feb 15 low), 124

Resistance levels - 125.45 (50-DMA), 125.70 (55-EMA), 125.96 (38.2% Fib)

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