- EUR/JPY is trading with a neutral bias on an intraday basis.
- The pair is extending grind along 20-DMA which is strong support currently at 129.50.
- Consolidation to continue into the week ahead, with weekly 200-SMA at 130.60 offering strong resistance.
- 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 68 and MACD supports uptrend.
- On the flipside, break below 20-DMA could see minor weakness upto 128 levels.
Support levels - 129.95 (5-DMA), 129.50 (20-DMA), 128.88 (60.8% Fib retrace of 141.05 to 109.20 fall)
Resistance levels - 130.76 (July 11 high), 131, 132 (Feb 2016 high)
Recommendation: Watch out for decisive break above weekly 200-SMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 48.4823 (Neutral), while Hourly JPY Spot Index was at 145.443 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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