- EUR/JPY broke above major trendline resistance at 126.35, daily technicals indicate further gains.
- The pair hit highs of 126.86 (fresh 11-day highs) and has since pared some gains to currently trade around 126.72 levels.
- Momentum studies are bullish, RSI strength seen at 54 levels, and major moving averages are biased higher.
- European markets remain closed on account of the Easter holiday, focus remains on Euro area inflation data this week (Thur, 31st Mar).
- A fall in inflation expectations in the context of rising oil prices could be seen as a more pressing concern for the ECB.
- Immediate resistance at 127 levels ahead of 127.30 (Mar 11 High), while supports on the downside are seen at 126.14 (5-DMA), then 125.96 (38.2% Fib retrace of 132.287 to 122.058 fall).
Recommendation: Good to buy dips around 126.65/70, SL: 125.90, TP: 126.95/127.15/127.40
