- EUR/JPY has broken out of consolidation phase with rising volumes.
- Momentum studies are bullish, we see scope for test of 200-DMA at 118.78.
- Bullish invalidation only below 20-DMA at 115.36, violation there could see test of 112.30 levels.
- Major support levels - 117 (1H 20-SMA), 116.86 (5-DMA), 116, 115.36 (20-DMA)
- Major resistance levels - 117.92 (July 20 high), 118.40 (July 15 high), 118.78 (200-DMA)
Recommendation: Good to go long on dips around 117, SL: 116.25, TP: 117.40/ 117.90/ 118.40/ 118.75
FxWirePro's Hourly EUR Spot Index was at --106.784 (Highly bearish), while Hourly JPY Spot Index was at -93.9156 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
