- EUR/JPY is consolidating previous session's spike, trades rangebound at 130.75 levels.
- Eurozone’s advanced CPI figures on Tuesdays came in above estimates keeping the euro buoyed across the board.
- On the otherside, BoJ disappointed with a dovish statement weighing on the Yen, pushing the pair higher.
- The Bank of Japan offered a dovish statement and added new forward guidance on interest rates, stating that rates would be kept ‘extremely low’ for an ‘extended period’.
- Technical studies for the pair are turning bullish after close above 100-DMA.
- Price action has bounced off support at daily cloud and 50-DMA and we see weakness only on break below.
- Stochs show rollover from oversold levels and RSI has edged above 50 levels. We also see +ve DMI dominance.
- Price has paused at 50% Fib, break above eyes 200-DMA at 131.75 and breakout there could see test of 61.8% Fib at 132.58.
- On the flipside, break below 100-DMA could see drag till daily cloud. Vioaltion there could negate bullish bias.
Support levels - 130.16 (100-DMA), 129.54 (38.2% Fib), 129.05 (cloud top)
Resistance levels - 131.06 (50% Fib), 131.75 (200-DMA), 132, 132.58 (61.8% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -13.5838 (Neutral), while Hourly JPY Spot Index was at -106.746 (Bearish) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
