FxWirePro: EUR/JPY struggles to extend gains above 126 handle

EUR/JPY is seeing a small recovery after 2 consecutive sessions of losses, but upside in the pair capped at 126 handle.

• The pair is struggling to extend gains beyond the 126 handle and has currently slipped from session highs to trade around 125.83 levels.
   
• Upside finds resistance at 126, 126.23 (5-DMA) and further above at 126.60 (trendline). Any bullishness only on breaks above 126.60.
   
• On the downside supports are aligned at 125.45 (10-DMA), 125.09 (Mar 15th lows) and then 125.01 (Feb 19th lows).
   
• RSI strength seen and major moving averages are biased higher, but Stochs have rolled over from overbought levels and correction could extend.
   
• Break above 126.60 could take the pair to 127.17 (50% Fib retrace of 132.287 to 122.058 fall).