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FxWirePro: EUR/JPY breaks above 21-EMA, bullish momentum to continue, stay long

EUR/JPY has broken stiff resistance at 21-EMA, raises scope for further upside. The pair has hit new 2-week highs at 130.128 before paring some gains to currently trade at 129.94. Euro boosted on speculation that the ECB…

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FxWirePro: EUR/JPY breaks above 21-EMA, bullish momentum to continue, stay long
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  • EUR/JPY has broken stiff resistance at 21-EMA, raises scope for further upside.
     
  • The pair has hit new 2-week highs at 130.128 before paring some gains to currently trade at 129.94.
     
  • Euro boosted on speculation that the ECB is willing to discuss QE tapering at their next June 14th meeting.
     
  • Technical indicators are bullish. Stochs and RSI have rolled over from oversold levels and MACD shows bullish crossover on signal line.
     
  • On the weekly charts, the pair has bounced off 100W SMA with a hammer formation.
     
  • The major has broken above 38.2% Fib at 129.54 and is on track to test major resistance 131.20 (converged trendline and cloud bottom).
     
  • On the flipside, 21-EMA at 129.05 is immediate support. Close below could see some weakness.

Support levels - 129.05 (21-EMA), 128.88 (5-DMA), 128, 127.66 (23.6% Fib)

Resistance levels - 130, 131, 131.20 (converged trendline and cloud bottom), 131.35 (May 22 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-extends-gains-for-the-4th-straight-session-eyes-382-Fib-at-12954-stay-long-1347083) has hit all targets.

Recommendation: Book partial profits. Trail SL to 129.50, hold for further upside. Target 131/ 131.20

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
 

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