EUR/JPY chart on Trading View used for analysis
- EUR/JPY is trading 0.30% higher on the day at 125.08 at 0950 GMT.
- The pair has bounced off daily cloud with a 'hammer' formation raising scope for further upside.
- Technical indicators are neutral at the moment.
- We see stiff resistance at 50-DMA at 125.51. Break above will propel the pair higher.
- Scope then for test of 110-EMA at 126.91 ahead of 50% Fib at 128.16.
- Break below cloud will see weakness till 23.6% Fib at 123.23.
Support levels - 124.48 (cloud top), 123.23 (23.6% Fib)
Resistance levels - 125.51 (50-DMA), 125.73 (55-EMA), 126.91 (110-EMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.