EUR/JPY chart - Trading View
Technical Bias: Bullish
- Extends bounce off 110-EMA, gains for the second straight session
- Price action breaks above 21-EMA and 5-DMA has turned North
- The pair has retraced brief dip below the daily cloud, price has retraced into daily cloud
- Successive 'Doji' formations at lows suggests market resistance to drive prices lower
- Volatility is high and rising and CCI supports upside in the pair
Support levels - 124.07 (21-EMA), 123.83 (20-DMA), 123.07 (110-EMA)
Resistance levels - 125.18 (200W MA), 125.56 (Cloud top), 126
Summary: Eurozone periphery bond yield spreads widen on fears of double-dip recession, can be a dampener for the pair. That said, selling pressure in the yen on the back of improved risk appetite can push prices higher. Major trend is neutral. Stiff resistance seen at 200W MA at 125.18. Breakout above could confirm further upside for the pair.
