EUR/JPY chart - Trading View
EUR/JPY has taken out fresh highs as the single currency remains bid on EU summit outcome.
The compromise struck by the EU leaders on the EU recovery plan seems to have buoyed positive sentiment.
That said, a consensus on the recovery plan would convince the markets of solidarity amongst the EU member states.
EUR/JPY was trading 0.09% higher on the day at 123.21 at around 06:15 GMT, extending gains for the 5th straight session.
Price action has broken above weekly cloud and 110W EMA. Technical indicators for the pair show scope for further upside.
Oscillators are biased higher on both the daily and weekly charts. Retrace from multi-month highs has bounced off 200-DMA support.
The pair has tested 123.22, 38.2% Fib retracement of Jan 2018 high (137.506) and May 2020 low (114.397).
Next bull target lies at 200W SMA at 124.71. Pullbacks likely on account of overbought oscillators. Bullish invalidation only below 200-DMA.
Major Support - 122.30 (110W EMA)
Major Resistance - 123.22 (38.2% Fib retracement of 137.506 and 114.397)
