FxWirePro: Strong support for EUR/JPY at 131.50, good to buy dips

Euro is extending last week's gains v/s the greenback which is inturn pushing EUR/JPY higher, the pait hit session highs at 132.23.

• Data released earlier on Monday showed that Japanese output and retail sales fell more than forecast, which was yen-bearish
   
• Japan's industrial output fell 1.0 pct in Nov, more than the median market forecast for a 0.6 pct drop while retail sales fell 1.0 pct y/y, more than a median market forecast for a 0.6 pct fall
   
• Dismal Japanese retail sales and industrial production data reinforced expectations for additional BOJ QQE as early as next month, further weighing on the Yen
   
• Weekly charts show more upside for the pair, strong support is seen around 130 levels, RSI is at 45 and room to run, Stochs are at neutral and show a bullish crossover
   
• On the dailies, price action has been pressurised below the cloud, Stochs have bounced off the 20 levels and are biased north, RSI is at 48 
   
• Strong resistance on the upside is seen at 132.80 (cloud base), breaks into the cloud could see the pair higher, 133.23 (Dec 14 high and 61.8 % Fib of 134.59-131.03 fall) next bull target
• On the downside strong support is seen at 131.48 levels, breaks below could take the pair to 131.03 (Dec 18 low)

Recommendation: Good to buy dips around 132 levels, SL: 131.50, TP1: 132.40, TP2: 132.80