FxWirePro: EUR/JPY finds strong support at 20-DMA, good to go long on decisive break above 130.60

• EUR/JPY is extending grind along 20-DMA which is strong support currently at 129.45.
• The pair is continuing consolidation at weekly 200-SMA at 130.60, bias higher.
• We see further bullishness only on break above. Test of 134 levels (78.6% Fib retrace of 141.05 to 109.205 fall) then likely.
• Momentum studies are bullish on weekly charts, RSI strong around 69 and MACD supports uptrend.
• On the flipside, break below 20-DMA could see minor weakness upto 128 levels.

Support levels - 130.01 (5-DMA), 129.45 (20-DMA), 128.88 (60.8% Fib retrace of 141.05 to 109.20 fall)

Resistance levels - 130.76 (July 11 high), 131, 132 (Feb 2016 high)

Recommendation: Watch out for decisive break above weekly 200-SMA to go long. 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 4.76488 (Neutral), while Hourly JPY Spot Index was at -135.257 (Bearish) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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