Hopes for a breakthrough in the EU Summit are keeping the euro bid, EUR/JPY spikes over 5%.
EUR/JPY was trading 0.51% higher on the day at 122.90 at around 06:15 GMT, outlook bullish.
The pair has closed above weekly cloud and 110W EMA. Technical indicators for the pair show scope for further upside.
Oscillators are biased higher on both the daily and weekly charts. Retrace from multi-month highs has bounced off 200-DMA support.
Next immediate hurdle lies at 123.22 (38.2% Fib retracement of Jan 2018 high (137.506) and May 2020 low (114.397). Break above 38.2% Fib finds little resistance till 200W SMA at 124.71.
On the flipside, immediate support is seen at 122.30 (converged 5-DMA and 110W EMA). Break below to see dip till 21-EMA at 121.40. Bullish invalidation below 200-DMA.
Major Support - 122.30 (converged 5-DMA and 110W EMA)
Major Resistance - 123.22 (38.2% Fib retracement of 137.506 and 114.397)
