- EUR/JPY pauses upside at 200-DMA (130.10), trades rangebound at 130.87 level.
- The pair has slipped lower from 6-week highs at 131.115, retraces below 131 handle.
- Euro bulls struggle to extend momentum, we see further upside only on break above 200-DMA.
- Technical indicators on daily charts have turned bullish, Stochs and RSI are biased higher.
- Price action has broken above daily cloud and edged above major EMAs. MACD and DMI support trend higher.
- Break above 200-DMA will see test of 131.98 (July 17 high) ahead of 132.43 (Mar 13 high).
Support levels - 130.15 (1H 55-EMA), 129.87 (5-DMA), 129.58 (110-EMA)
Resistance levels - 131.30 (50W SMA), 131.98 (July 17 high), 132.43 (Mar 13 high)
Recommendation: Watch out for break above 200-DMA to go long. target 131.30/ 132/ 132.40
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 24.4986 (Neutral), while Hourly JPY Spot Index was at -72.5956 (Neutral) at 0945 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
