- EUR/JPY finds strong support by daily cloud at 121.35, weakness only on break below.
- The pair struggles to close below 50-DMA currently at 121.63.
- 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, close above 5-DMA at 121.95 raises scope for test of 123.80 (trendline).
- Support levels - 121.63 (50-DMA), 121.35 (cloud top), 120.54 (Jan 17 low)
- Resistance levels - 122.95 (Jan 20 high), 123.80 (trendline), 124
Recommendation: Good to go long on break above 122.10, SL: 121.50, TP: 122.95/ 123.20/ 123.80
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 6.9757 (Neutral), while Hourly JPY Spot Index was at -82.8875 (Bearish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
