FxWirePro: EUR/JPY holds cloud support, break above will fuel further gains

Chart - Courtesy Trading View 

EUR/JPY was trading 0.22% higher on the day at 139.51 at around 11:10 GMT. The pair is extending gains for the 3rd straight session, scope for further upside.

Price action is above 55-EMA and is testing 21-EMA resistance, break above cloud will boost bullish bias.

The pair has edged above 200H MA and GMMA indicator shows major and minor trend have turned bullish on the intraday charts.

RSI is now biased higher and Stochs are on verge of bullish rollover from oversold levels. 

Further, ECB Governing Council member Olli Rehn was reported saying "ECB likely to raise key rate by 25 bps next week and 0.5 percentage points in September.'

Support levels:

S1: 138.88 (55-EMA)

S2: 138.41 (5-DMA)

Resistance levels:

R1: 139.74 (21-EMA)

R2: 140.73 (20-DMA)

Summary: EUR/JPY pivotal at 21-EMA resistance. Break above will fuel further gains in the pair.