FxWirePro: EUR/JPY edges lower from 5-week highs at 125.35, bias higher

• EUR/JPY edges lower from 5-week highs at 125.35, hovers around 125 handle.
   
• The pair extends gains in a rising channel pattern and we see scope for upside on daily charts.
   
• Momentum studies are bullish, channel top at 126.20 is next immediate bull target.
   
• Violation at channel top could see test of 61.8% Fib of 141.05 to 109.20 fall at 128.88.
   
• The pair finds strong support at 20-DMA at 124.03, we see resumption of weakness only on break below.
   

Support levels - 124.39 (5-DMA), 123.97 (20-DMA), 123.11 (50-DMA)

Resistance levels - 125, 125.31 (June 2nd high), 125.80 (May 25 high), 126.25 (channel top)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-finds-strong-support-at-20-DMA-eyes-channel-top-at-12620-773788) has hit TP1&2.

Recommendation: Bias higher. Book partial profits at highs, raise trailing stops to 124.60, hold for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 92.3368 (Bullish), while Hourly JPY Spot Index was at -79.626 (Slightly bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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