FxWirePro: EUR/JPY holds above 5-DMA, intraday bias higher, good to long dips

Fundamental Factors:

• Yen was sold-off last week into increased bond-buying plans announced by the BOJ which squashed tapering hopes.
• The BoJ announced JGB-buying plans and increased bond purchases in the 5-10 year maturity range.
• After two straight days of rises, EUR/JPY slightly weaker on the day as yen rises back on the bids.
• Risk-off across markets after Trump’s travel bans fuelled concerns over his protectionist policies and its impact on global trade.

Technical Studies:

• EUR/JPY finds major support by 50-DMA at 121.75, we see weakness only on break below.
• Below 50-DMA, the pair finds next strong support by daily cloud at 121.49.
• The pair is slightly weaker on the day, down 0.18% at the time of writing, but holds above 5-DMA.
• Technical studies support upside, RSI is above 50 levels MACD is showing a bullish crossover on signal line.

Support levels - 122.38 (5-DMA), 122.15 (20-DMA), 121.75 (50-DMA), 121.49 (cloud top)

Resistance levels - 122.95 (Jan 20 high), 123.80 (trendline), 124

Call update: Our previous call (http://www.econotimes.com/FxWirePro-EUR-JPY-holds-cloud-support-weakness-only-on-break-below-507599) has achieved TP1.

Recommendation: Hold for targets. 

TIME  TREND INDEX  OB/OS INDEX    
 

1H          Neutral              Neutral       
    
4H          Bearish              Neutral       

1D          Bullish               Neutral        

1W         Bullish               Neutral  
 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -34.9741(Neutral), while Hourly JPY Spot Index was at -83.6124 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.