- EUR/JPY extends breakout above monthly Ichimoku cloud, we see scope for further upside.
- Technical studies support upside. Momentum studies are bullish. RSI strength seen at 65 levels with room to run further.
- MACD is biased higher, supporting trend higher. We see +ve DMI dominance and ADX also supports current uptrend.
- We see scope for test of 140 levels which is major trendline ahead of 141 which is 61.8% Fib retrace of 169.968 to 94.114 fall.
- On the flipside, we see immediate support at 5-DMA at 136.28, break below will find next support at 135.43 (20-DMA).
- We see bullish invalidation on breach at 100-DMA support at 133.59.
Support levels - 135.43 (20-DMA), 134 (trendline), 133.59 (100-DMA)
Resistance levels - 139 (Aug 2015 high), 140, 141 (converged trendline and 61.8% Fib retrace of 169.968 to 94.114 fall)
Recommendation: Good to go long on dips around 136/ 136.50, SL: 134, TP: 139/ 141/ 145.
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