- EUR/JPY has retraced above 20-DMA, intraday bias remains higher.
- The pair is trading in a rising channel and we see scope for upside on daily charts.
- Technical indicators in the pair are bullish, RSI is biased north and is above 50 levels.
- MACD line is on verge of a bullish crossover on signal line, confirmation of which will accentuate upside.
- We see bullish invalidation only on close below 50-DMA at 122.43.
Support levels - 124.05 (20-DMA), 123.90 (5-DMA), 122.43 (50-DMA)
Resistance levels - 125, 125.31 (June 2nd high), 125.80 (May 25 high), 126.45 (channel top)
Recommendation: Good to go long on dips around 124.40, SL: 123.90, TP: 125/ 125.30/ 125.80
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -76.6184 (Neutral), while Hourly JPY Spot Index was at -74.9312 (Neutral) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
