- The single currency trade largely muted ahead of eurozone PMI data due later in the EU session.
- EUR/JPY recovered previous session's dip, and is currently hovering around 5-DMA at 128.53.
- The pair has shown a clear channel breakout last week, bias remains higher.
- Consolidation phase likely for sometime, break above 61.8% Fib will see resumption of upside in the pair.
- Technical indicators are highly bullish, we see weekly 200-SMA at 130.65 as next bull target.
- Weakness seen only on retrace below channel top at 126.25, drag till 20-DMA at 124.88 then likely.
Support levels - 128.52 (5-DMA), 126.30 (channel top), 125.82 (weekly 5-SMA)
Resistance levels - 128.88 (61.8% Fib retrace of 141.05 to 109.20 fall), 129, 130.65 (weekly 200-SMA)
Recommendation: Good to go long on break above 128.88, SL: 128, TP: 129/ 130/ 130.65
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