FxWirePro: EUR/JPY finds major resistance at 129.60, breakout could see test of 131 levels

Refer EUR/JPY chart on Trading View

• EUR/JPY has closed a bullish gap open, edges lower from 4-week highs at 129.68.
   
• The pair is currently trading at 129.07, down 0.14% at the time of writing.
   
• Technical indicators are turning slightly bullish on the intraday charts.
   
• The pair finds stiff resistance at 129.60 (converged trendline and 100-DMA), breakout could see test of 131 levels.  
   
• 5-DMA is sharply higher and has broken above 21-EMA, momentum indicators are bullish and we see bullish MACD line crossover on signal line.
   
• Price action is holding above 129 mark, break below will see next support at 128.75 (1H 55-EMA). Violation at 21-EMA at 128.15 to see further bearishness. 
   
• Focus on German IFO business climate for August. Expectations are for German IFO business climate to arrive at 102.0 versus 101.7 previous. Upbeat data could stall downside.
   
• Breakout at 100-DMA could see upside till 131 (50% Fib).

Support levels - 128.75 (1H 55-EMA), 128.48 (5-DMA), 128.15 (21-EMA)

Resistance levels - 129.60 (100-DMA), 130.13 (cloud top), 131.06 (50% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 107.642 (Bullish), while Hourly JPY Spot Index was at -54.8745 (Neutral) at 0625 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.