FxWirePro: EUR/JPY breakout above cloud and 200-DMA reinforces upside bias

Chart - Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.13% lower on the day at 130.84 at around 04:00 GMT, outlook bullish.

Previous Week's High/ Low: 131.02/ 129.26

Previous Session's High/ Low: 131.02/ 130.16

Fundamental Overview:

As German finance minister pledges tax relief from 2023, hopes of tax relief can favor EUR bulls.

German Finance Minister Christian Lindner unveiled tax relief for at least 30 billion euros ($34.1 billion) to individuals and companies during 2023 in his latest comments, Reuters reports.

On the data front focus remains on the Markit Manufacturing PMIs for December across the euro area for impetus. 

Technical Analysis:

- EUR/JPY closed above 200-DMA on Friday's trade

- Price action has also broken out of daily cloud

- GMMA indicator shows minor trend is strongly bullish, while major trend is turning bullish

- Volatility is high and momentum is bullish

Major Support and Resistance Levels:

Support - 130.50 (200-DMA), Resistance - 131.20 (61.8% Fib)

Summary: EUR/JPY closed 2021 with a bullish bias. Break out at 200-DMA and daily cloud has reinforced upside bias. Next immediate bull target lies at 61.8% Fib at 131.20 ahead of 132 mark.