- Euro gains upside traction as markets await EZ CPI data due shortly.
- EUR/JPY has erased losses to edge higher from lows at 126.45 to currently trade at 127.56, up 0.45% on the day.
- Retake of 127 handle raises scope for further upside in the pair.
- Immediate resistance seen at 127.57 (3H 55-EMA), break above could see further upside.
- We see bullish divergence on the 3H charts which coupled with strong momentum seen in Stochs and +ve DMI crossover adds to upside bias.
- On the flipside, close below 5-DMA at 126.97 to see resumption of weakness.
Support levels - 127, 126.97 (5-DMA), 126.17 (50% Fib)
Resistance levels - 127.57 (3H 55-EMA), 128, 128.37 (3H cloud base), 129 (3H 100 SMA)
Recommendation: Good to go long on break above 127.57 (3H 55-EMA), SL: 127, TP: 128/ 128.35/ 129
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 120.967 (Bullish), while Hourly JPY Spot Index was at -95.5278 (Bearish) at 0830 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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