- EUR/JPY is extending gains for the 6th straight session, hits new 2-week highs at 128..96.
- Euro boosted on speculation that the ECB is willing to discuss QE tapering at their next June 14th meeting.
- Upside likely to be limited as the final versions of EU May PMI were in-line with market's expectations but still discouraging.
- Eurozone Markit Composite PMI printed in-line with expectations at 54.1, its lowest in 18-month.
- The major has broken above 23.6% Fib and is on track to test 38.2% Fib at 129.54.
- Technical indicators are turning bullish. Stochs and RSI have rolled over from oversold levels and MACD shows bullish crossover on signal line.
- Upside is testing stiff resistance at 21-EMA at 128.88, break above could see further upside. Next bull target lies at 129.54 (38.2% Fib).
- On the flipside, 5-DMA at 128.16 is immediate support. Close below could see some weakness.
Support levels - 128.16 (5-DMA), 128, 127.66 (23.6% Fib)
Resistance levels - 128.88 (21-EMA), 129, 129.54 (38.2% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-extends-gains-for-the-4th-straight-session-eyes-382-Fib-at-12954-stay-long-1347083) has hit TP1/2.
Recommendation: Book partial profits. Trail SL to 128, hold for further upside.
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