- EUR/JPY broke consolidation and rallied higher on hawkish ECB headlines.
- Markets cheered the Bloomberg report, citing sources that some ECB members see a rate hike at the end of 2019 as 'too late.
- The pair spiked past daily cloud and 5-DMA at 129.08 to hit session highs at 129.51, bias higher.
- Technical indicators on intraday charts are turning bullish. Stochs and RSI are biased higher.
- The pair is testing key resistance at 55-EMA at 129.35, break above targets 110-EMA at 130.26.
- Price action has found strong support at 21-EMA at 128.65, we see weakness only on break below.
Support levels - 129.08 (5-DMA), 128.48 (cloud base), 128
Resistance levels - 129.54 (38.2% Fib), 130, 130.26 (110-EMA)
Recommendation: Good to go long on dips around 129.10/20, SL: 128.60, TP: 129.55/ 130/ 130.25
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 5.57717 (Neutral), while Hourly JPY Spot Index was at -61.9468 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
