FxWirePro: EUR/JPY extends consolidation after major trendline breakout, bias higher

• Choppy trade seen in EUR/JPY after break of major trendline resistance at 132.35.
   
• Upside is currently pausing shy of 61.8% Fib retrace of 149.787 to 109.205 fall at 134.28.
   
• The pair has shown a decisive break above weekly 200-SMA at 130.49 last week.
   
• Momentum studies on weekly charts are bullish. RSI and Stochs are biased higher.
   
• Break above 61.8% Fib to see further gains. Scope then for test of 135 and then 136.68 (Feb 2015 highs).
   
• On the downside, retrace below 200-W SMA at 130.47 will negate bullish bias.

Support levels - 133.38 (5-DMA), 131.38 (20-DMA), 130.47 (200W SMA)

Resistance levels - 134.28 (61.8% Fib retrace of 149.787 to 109.205 fall), 135, 136.68 (Feb 2015 highs)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-ends-consolidation-phase-200-W-SMA-breakout-raises-scope-for-upside-906207).

Recommendation: Since the pair failed to break below 5-DMA we revise entry to around 133.40/50 levels. Stay long for 134/ 135/ 136/ 136.68.

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