EUR/JPY extends retrace from near channel base, breaks above 5-DMA resistance at 127.68, currently at 128.07.
- Technical indicators have already corrected extreme oversold reading, RSI and Stochs point north.
- This week EU summit turns euro crosses into high beta - hyperactive OTC arrangements indicate euro 's gains within eurozone.
- Immediate resistance is located at 128.25 (38.2% Fib of 132.28 to 125.77 fall), while 5-DMA at 127.68 is now immediate support on the downside.
- We had advised a long on the pair (http://www.econotimes.com/FxWirePro-EUR-JPY-correcting-from-lows-good-to-buy-dips-160766)
Recommendation: Hold for targets.
