- EUR/JPY tracks gains in USD/JPY, bias higher, on track to test 20--DMA at 118.73.
- The pair has broken out of consolidation phase with rising volumes.
- Momentum studies are bullish, we see scope for test of 200-DMA at 118.78.
- Bullish invalidation only below 20-DMA at 115.58, violation there could see test of 112.30 levels.
- Major support levels - 17 (1H 20-SMA), 116.86 (5-DMA), 116, 115.36 (20-DMA)
- Major resistance levels - 117.92 (July 20 high), 118.40 (July 15 high), 118.78 (200-DMA)
- Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-on-track-to-test-200-DMA-good-to-buy-on-dips-409882) has hit TP1.
Recommendation: Book partial profits, raise trailing stops to 117, hold for upside.
FxWirePro's Hourly EUR Spot Index was at -43.565 (Neutral), while Hourly JPY Spot Index was at -150.215 (Highly bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
