FxWirePro: EUR/JPY hovers around 125 handle, break above 50-DMA (125.51) to propel the pair higher

EUR/JPY chart on Trading View used for analysis

• EUR/JPY is trading 0.30% higher on the day at 125.08 at 0950 GMT.
   
• The pair has bounced off daily cloud with a 'hammer' formation raising scope for further upside.
   
• Technical indicators are neutral at the moment. 
   
• We see stiff resistance at 50-DMA at 125.51. Break above will propel the pair higher.
   
• Scope then for test of 110-EMA at 126.91 ahead of 50% Fib at 128.16.
   
• Break below cloud will see weakness till 23.6% Fib at 123.23.

Support levels - 124.48 (cloud top), 123.23 (23.6% Fib)

Resistance levels - 125.51 (50-DMA), 125.73 (55-EMA), 126.91 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.