FxWirePro: EUR/JPY finds stiff resistance at 129 levels, break above targets 200-DMA

EUR/JPY chart on Trading View used for analysis

• EUR/JPY trades in the green for the second straight session, up 0.18% on the day at 128.93 at the time of writing.
   
• Price action extends in 'Symmetric Triangle' pattern and breakout will provide clear direction.
   
• The pair finds stiff resistance in 129 levels (converged Triangle top and cloud base), break above required for further gains.
   
• Technical analysis for the day shows neutral bias. RSI and Stochs are flat and inconclusive.
   
• Breakout above 129 resistance will raise scope for test of 200-DMA.
   
• European Commission (EC) rejected Italy's proposed budget, paving the way for disciplinary actions called "debt-based excessive deficit procedure.
   
• Focus now on ECB minutes.  If the minutes downplay the recent slowdown in the economy and Italy concerns and reaffirm commitment to end the QE program in December, we may see spike higher.
   
• On the flipside we see strong support at 127.35 (major trendline). Break below could see weakness till 126.63 (Oct 26 low)

Support levels - 128.71 (5-DMA), 127.35 (trendline), 126.63 (Oct 26 low)

Resistance levels - 129, 129.21 (55-EMA), 129.91 (200-DMA) 

Recommendation: Watchout for breakout at 129 handle to go long, target 200-DMA at 129.91

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