FxWirePro: EUR/JPY extends gains above trendline resistance, focus on Draghi's speech

• EUR/JPY is extending upside after breakout above major trendline resistance at 122.30.
   
• The pair is up 0.18% in the Asian session today, currently trading at 122.73, intraday bias higher.
   
• Japanese yen marginally lower in early Asia as Japan’s core machinery orders mark biggest fall in 8 months.
   
• Japan’s January machinery orders m/m decrease to -3.2 % (forecast 0.5 %) vs previous 6.7 %.
   
• Japan’s January machinery orders y/y decrease to -8.2 % (forecast -3.3 %) vs previous 6.7 %.
   
• Focus now remains on ECB president Draghi's speech later in the European session for further impetus.
   
• After upbeat U.S. NFP data markets fully priced in that the Fed will hike on 15 March, but the main question now is over the pace of tightening thereafter. 
   
• U.S. debt ceiling that expires on March 16 is another major concern, which could favour Yen demand.
   
• If the Democrats are unable to reach a quick agreement to extend the ceiling, the Trump 'fiscal-policy-trade' could come into jeopardy.

Support levels - 122.25 (falling trendline), 122, 121.55 (5-DMA), 121.14 (50-DMA)

Resistance levels - 122.95 (Jan 20 high), 123.31 (Jan 27 high), 123.85 (Dec 30 high), 124

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Bullish                Overbought       
1D          Bullish                Neutral        
1W         Bullish                Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-finds-stiff-resistance-at-12230-good-to-go-long-on-break-above-584258) is progressing well. 

Recommendation: We recommend holding for targets.