EUR/JPY chart - Trading View
- EUR/JPY is extending recovery from 3-week lows at 124.27 hit on Thursday's trade.
- The pair bounced off with a 'Dragonfly Doji' formation on Friday's trade, raising scope for further upside.
- Price action is trading short of 125 handle and break above will see further gains.
- Technical studies are largely bearish. We see a bearish engulfing candle on the weekly charts.
- Upside recovery attempts likely to be limited. We see stiff resistance in the 125.65 to 125.80 zone.
- Traders now await German Industrial Output and Trade Balance data for further impetus.
Support levels - 124.17 (Lower BB), 124, 123.40 (Jan 15 low)
Resistance levels - 125.51 (5-DMA), 125.80 (55-EMA), 126
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