FxWirePro: EUR/JPY extends recovery from 3-week lows, 'Dragonfly Doji' formation raises scope for upside

EUR/JPY  chart - Trading View 

• EUR/JPY is extending recovery from 3-week lows at 124.27 hit on Thursday's trade.
   
• The pair bounced off with a 'Dragonfly Doji' formation on Friday's trade, raising scope for further upside.
   
• Price action is trading short of 125 handle and break above will see further gains.
   
• Technical studies are largely bearish. We see a bearish engulfing candle on the weekly charts.
   
• Upside recovery attempts likely to be limited. We see stiff resistance in the 125.65 to 125.80 zone. 
   
• Traders now await German Industrial Output and Trade Balance data for further impetus.

Support levels - 124.17 (Lower BB), 124, 123.40 (Jan 15 low)

Resistance levels - 125.51 (5-DMA), 125.80 (55-EMA), 126

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.