- EUR/JPY is struggling to break above weekly 200-SMA currently at 130.55. We see upside only on decisive close above.
- The pair is extending consolidation after breaking channel top, bias remains higher.
- The pair is currently hover around 129.89 levels, 20-DMA at 129.93 is stiff resistance.
- If the pair sustains break above 130.55 on a weekly close will see news highs for the pair.
- MACD supports trend higher. RSI and Stochs are at overbought levels, but bias still higher.
- Break above weekly 200-SMA raises scope for test of 61.8% Fib retrace of 149.78 to 109.205 fall at 134.28.
Support levels - 129.26 (5-DMA), 129, 128..03 (50-DMA)
Resistance levels - 130.40 (Aug 2 highs), 130.55 (weekly 200-SMA), 132.02 (Feb 2016 high), 132.28 (Jan 2016 high)
Recommendation: Watch out for decisive close above weekly 200-SMA at 130.55 to go long.
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