EUR/JPY chart on Trading View used for analysis
- EUR/JPY is trading in an extremely narrow range, capped below 55-EMA resistance.
- The pair is grinding higher, holds above 21-EMA. Major trend is bearish, but intraday bias has turned slightly bullish.
- Stochs, RSI and MACD on the daily charts support upside. Price action on the 4 hourly chart has broken above 4H 200 SMA.
- Break above 55-EMA raises scope for test of 110-EMA at 127.30 ahead of 200-DMA at 128.58.
- On the flipside, 5-DMA is immediate support at 125.30. Break below 125 handle to see downside resumption.
- Markit is scheduled to publish its Services PMI reports for the euro area and Germany as well as the U.S. later in the day.
- If the PMI data from the eurozone disappoint, we could see the shared currency come under a renewed pressure.
Support levels - 125.31 (5-DMA), 125.09 (21-EMA), 124.36 (Feb 1st low)
Resistance levels - 126.11 (55-EMA), 127.30 (110-EMA), 128.58 (200-DMA)
Recommendation: Watch out for break above 55-EMA to go long, target 127/ 127.30/ 128
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
