FxWirePro: EUR/JPY edges lower from session highs at 126.86, momentum higher, good to buy dips
EUR/JPY broke above major trendline resistance at 126.35, daily technicals indicate further gains. The pair hit highs of 126.86 (fresh 11-day highs) and has since pared some gains to currently trade around 126.72 levels.…
EUR/JPY broke above major trendline resistance at 126.35, daily technicals indicate further gains.
The pair hit highs of 126.86 (fresh 11-day highs) and has since pared some gains to currently trade around 126.72 levels.
Momentum studies are bullish, RSI strength seen at 54 levels, and major moving averages are biased higher.
European markets remain closed on account of the Easter holiday, focus remains on Euro area inflation data this week (Thur, 31st Mar).
A fall in inflation expectations in the context of rising oil prices could be seen as a more pressing concern for the ECB.
Immediate resistance at 127 levels ahead of 127.30 (Mar 11 High), while supports on the downside are seen at 126.14 (5-DMA), then 125.96 (38.2% Fib retrace of 132.287 to 122.058 fall).
Recommendation: Good to buy dips around 126.65/70, SL: 125.90, TP: 126.95/127.15/127.40