FxWirePro: EUR/JPY refreshes multi-month highs above 132 handle, focus on German CPI data

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.28% higher on the day at 132.02 at around 08:20 GMT, outlook bullish.

The common currency continues bull run across the board, pushing the pair higher for the 5th straight session.

Markets await the preliminary reading of the German Harmonized Index of Consumer Prices for April.

German CPI is expected to stay unchanged around 2.0% YoY, and will be closely watched amid renewed expectations of taper talks. 

Ahead of that the European Central Bank (ECB) Vice President Luis De Guindos’ speech and second-tier sentiment data could offer intermediate direction to the euro pairs. 

Price action has edged above crucial resistance at 200-month MA at 130.30, raising scope for further gains.

Technical indicators support upside in the pair. MACD shows a bullish crossover on signal line and +ve DMI dominance adds to the bullish bias.

The pair has hit fresh multi-month highs above 132 handle, close above 200-month MA will buoy bulls. 

Resistances align at 133.13 (17th Sept 2018 high) ahead of 88.6% Fib at 134.87. On the flipside, 5-DMA is immediate support at 131.22. Bullish invalidation below 200-month MA.