FxWirePro: EUR/JPY inches closer to 127 handle, slowdown in virus cases and strong data across Eurozone buoy euro

EUR/JPY chart - Trading View 

EUR/JPY extends gains above 126 handle, outlook remains strongly bullish.

The pair confirmed a bullish 200W MA breakout, and is on track to hit 2020 highs.

Price action on the day was supported by strong euro which remained bid across the board amid slowdown in virus cases across Eurozone and strong data.

Recent data showed Germany reported a surprise drop in unemployment numbers that helped ease the unemployment rate, while Manufacturing PMI for the Eurozone was revised higher.

The single currency is seen extending gains ahead of the European Central Bank's Dec. 10 meeting.  Policymakers are widely expected to announce additional monetary easing measures. 

Technical indicators show upside for the pair. Analysis of GMMA indicator shows minor trend has shifted to bullish, while major trend is turning bullish.

On the weekly charts, the pair has broken crucial resistances at 200W MA and falling trendline at 126.25, confirming further upside. 

Next hurdle aligns at 127 handle, break above will see spiral towards next bull target at 61.8% Fib at 128.67. On the flipside, failure to hold above 200W MA will negate any further bullishness.