- EUR/JPY is extending choppy trade between 100 and 200 DMAs, near-term bias bullish.
- Technical indicators support upside in the pair. We see scope for gains on breakout at 100-DMA.
- RSI is above 50 and biased higher. Stochs show bullish momentum.
- We see +ve DMI dominance and ADX is above 25 and rising in support of the uptrend.
- Break above 100-DMA finds next major resistance at cloud top at 133.42. Break above cloud will propel the pair higher.
- On the downside, immediate support aligns at 5-DMA at 132.56 ahead of 21-EMA at 131.82.
- Violation at 21-EMA will see drag till major trendline support at 130.20
Support levels - 132.56 (5-DMA), 132.15 (23.6% Fib), 131.82 (21-EMA)
Resistance levels - 133.04 (100-DMA), 133.42 (Cloud top), 134.40 (trendline)
Recommendation: Watch out for break out at 100-DMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 23.3172 (Neutral), while Hourly JPY Spot Index was at -11.0261 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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