- EUR/JPY has broken consolidation and edged above weekly 200-SMA at 130.60.
- The pair hit fresh 18-month high at 131.40 and has since pared gains to currently hover around 130.79 levels.
- The major has broken out of consolidation phase in which it was confined since start of July.
- If the pair sustains break above 130.60 on a weekly close will see news highs for the pair.
- MACD supports trend higher. RSI and Stochs are at overbought levels, but bias still higher.
- 20-DMA is strong support currently at 129.93. Break below 20-DMA could see short-term weakness.
Support levels - 130.60 (weekly 200-SMA), 129.93 (20-DMA), 129.86 (weekly 5-SMA)
Resistance levels - 130.40 (Aug 2 highs), 132.02 (Feb 2016 high), 132.28 (Jan 2016 high)
Recommendation: Watchout for decisive close above weekly 200-SMA at 130.60 to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 119.879 (Bullish), while Hourly JPY Spot Index was at 43.6234 (Neutral) at 0725 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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