FxWirePro: EUR/JPY extends consolidation at weekly 200-SMA, bias higher

• EUR/JPY struggles to extend gains above 130 handle, finds strong support at 20-DMA at 129.32.
• The pair is extending consolidation around weekly 200-SMA at 130.60 ahead of the next move higher.
• We see further bullishness only on break above. Test of 134 levels (78.6% Fib retrace of 141.05 to 109.205 fall) then likely.
• Momentum studies are bullish on weekly charts, RSI strong around 69 and MACD supports uptrend.
• 20-DMA at 129.32 is strong support, break below could see minor weakness upto 126 levels.

Support levels - 129.86 (5-DMA), 129.032(20-DMA), 128.88 (60.8% Fib retrace of 141.05 to 109.20 fall)

Resistance levels - 130, 130.60 (weekly 200-SMA), 132 (Feb 2016 high)

Recommendation: Watch out for break above weekly 200-SMA to go long. 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -44.6859 (Neutral), while Hourly JPY Spot Index was at -70.9219 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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