FxWirePro: EUR/JPY breaks into daily cloud, on track to 50-DMA at 131.33

• EUR/JPY is extending upside for the 4th straight session after holding above major support at 200W SMA.
   
• Euro edged higher as Italy's anti-establishment parties looked likely to form the next government.
   
• The pair bounced off 200W SMA with a hammer formation and has taken out 131 handle.
   
• Price action has broken stiff resistance at daily cloud base raising scope for further upside.
   
• The pair is currently testing resistance at 50-DMA at 131.33, breakout above to see further upside.
   
• On the downside, 200W SMA is major support at 129.16. Any further weakness only on break below.

Support levels - 130.96 (23.6% Fib), 130.35 (5-DMA), 129.17 (200W SMA)

Resistance levels - 131.57 (20-DMA), 132.21 (38.2% Fib), 132.35 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Cloud-caps-upside-in-EUR-JPY-good-to-go-long-on-break-above-1306572) has hit TP1/2.

Recommendation: Book partial profits. Watch out for break above 50-DMA for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 140.3 (Bullish), while Hourly JPY Spot Index was at -104.758 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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