- EUR/JPY fails to close below 50-DMA which is strong support, currently at 121.53.
- The pair also holds above daily cloud and only break below could see downside.
- Violation at 50-DMA would allow slippage to the 121.37 (38.2% Fib retrace of 141.05 to 109.20 fall) and then 120.55 January low.
- On the flipside, break above 5-DMA at 122.11 raises scope for test of 123.80 (trendline).
- Support levels - 121.53 (50-DMA), 121.29 (cloud top), 120.54 (Jan 17 low)
- Resistance levels - 122.10 (5-DMA), 122.95 (Jan 20 high), 123.80 (trendline)
Recommendation: Good to go long on break above 5-DMA at 122.10, SL: 121.50, TP: 122.95/ 123.20/ 123.80
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 28.1019 (Neutral), while Hourly JPY Spot Index was at -30.9906 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
