FxWirePro: EUR/JPY tests 50-DMA at 128.90, decisive break above to see further upside

Refer EUR/JPY chart on Trading View

• EUR/JPY extends gains for the 4th straight session, trades 0.28% higher at 128.75 at the time of writing.
   
• German manufacturing PMIs were largely inline with expectations. While, Eurozone consumer confidence drops more than expected to -1.9 vs. forecasts for drop to -0.7. 
   
• Price action has is extending gains above 128 handle and has tested 50-DMA resistance at 128.91.
   
• Technical indicators have turned bullish. Stochs are biased higher and RSI has edged above 50 level.
   
• The pair has broken into daily cloud and decisive break above 50-DMA will see continuation of upside.
   
• We see scope for test of 38.2% Fib at 129.54 ahead of cloud top at 130.04. Weakness only on close below 5-DMA.

Support levels - 128.30 (cloud base), 128.02 (21-EMA), 127.87 (5-DMA)

Resistance levels - 128.91 (50-DMA), 129.54 (38.2% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-consolidates-above-21-EMA-eyes-50-DMA-at-12890-stay-long-1419306) has hit TP1.

Recommendation: Book partial profits at highs. Watch for break above 50-DMA for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 38.3912 (Neutral), while Hourly JPY Spot Index was at -96.6387 (Bearish) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.