FxWirePro: EUR/JPY capped below 50-day MA, break above needed for further upside

• EUR/JPY unable to hold gains above 50-day MA on Monday's trade.
   
• Price action capped below 50-day MA today as we head into the European session.
   
• Attention turns towards euro area inflation data with results from Spain and Germany due later today.
   
• Expectations are for the drag from energy price inflation to continue to fade as the oil price has moved higher.
   
• In July, the figure was slightly higher and continued to point to some economic progress despite Brexit vote.
   
• Also, European Commission's economic sentiment indicator due today will provide more information about the state of the euro area economy.
   
• Break above 50-DMA could see a test of 114.81 ((Aug 2nd high), 115.50 (June 16th low) and then 116 levels.
   
• The pair finds major support by 20-DMA at 113.32 and further below at 113.10 (rising trendline).
   
• Weakness only on break below 20-DMA, test of 112.36 then likely.
   

Recommendation: Good to go long on break above 114.40, SL: 113.30, TP: 114.81/ 115.50/ 115.75