- EUR/JPY has shown a bounce off 20-DMA support, we see scope for further upside.
- Yen largely ignores upbeat Japan retail sales data, EUR/JPY trades 0.25 pct higher on the day.
- Market sentiment remains largely mixed and uncertain given persistent holiday-thinned light trading.
- Strength in RSI seen at 61 levels with scope to run further.
- Break below 20-DMA could see some downside, test of 121 levels then likely.
- Short-term bearish reversal only below 200-DMA at 118.26.
- Support levels - 122.68 (5-DMA), 122.32 (20-DMA), 122, 121.71 (Dec 20 low), 121, 120.58 (23.6% Fib of 109.20 to 124.09 rally)
- Resistance levels - 123.24 (session high), 124.09 (Dec 15 high)
Recommendation: Good to go long on dips around 122.75, SL: 122.30, TP: 123.20/ 123.60/ 124.
FxWirePro's Hourly EUR Spot Index was at 112.047 (Highly bullish), while Hourly JPY Spot Index was at -29.5154 (Neutral) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
