- EUR/JPY extends gains for a 3rd consecutive session, up 0.24 pct on the day.
- Technical indicators support upside, but Stochs are in overbought zone which suggests caution.
- The pair finds major trendline resistance at 122.20, break above could see resumption of upside.
- On the flipside, break below 5-DMA could see drag till 100-DMA at 120.60.
- Recent Eurozone economic data from the Eurozone have demonstrated increasing resilience.
- Draghi has said, “The risks surrounding the euro-area growth outlook are moving towards a more balanced configuration”.
- However, Draghi also said last week that price pressures continue to remain subdued and have yet to show a convincing upward trend.
- Focus now remains on Eurozone PMI numbers due today and the tone of the FOMC statement to be released on Wednesday.
Support Levels: 122, 121.51 (5-DMA), 12.60 (100-DMA)
Resistance Levels: 122.20 (Trendline), 122.88 (March 13 high), 123 (88.6% Fib retrace of 124.09 to 114.85 fall)
