- EUR/JPY has retraced dip below 21-EMA, extends upside for a 2nd straight session.
- Downside has taken support at 5-DMA at 129.50, we see weakness only on decisive break below 21-EMA.
- The major has retraced from session highs of 130.27 and is currently trading at 129.88 levels.
- Rising expectations that the ECB could lay out a path to end its massive quantitative-easing program at their forthcoming meeting next week likely to limit any downside.
- On the weekly charts, the pair has bounced off 100W SMA with a hammer formation.
- Decisive break above 38.2% Fib at 129.54 has raised scope for test of resistance 131 (major trendline).
- On the flipside, close below 21-EMA at 129.12 could see some weakness till 23.6% Fib at 127.66
Support levels - 129.50 (5-DMA), 129.12 (21-EMA), 129
Resistance levels - 130, 131 (trendline), 131.35 (May 22 high)
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