- EUR/JPY is extending upside for the 3rd straight session after holding above major support at 200W SMA.
- The pair is trading in a narrow range as we head into the European session. Doji formation seen on the daily candle till now.
- Price action finds stiff resistance at daily cloud base at 130.61. We see further upside on break above.
- Market now look forward to the ECB President Mario Draghi's scheduled speech on Friday for some fresh impetus.
- Break into cloud will take the pair higher to test next major resistance at 50-DMA at 131.33.
- On the downside, 200W SMA is major support at 129.19. Any further weakness only on break below.
Support levels - 130.06 (5-DMA), 129.19 (200W SMA), 128.94 (March low)
Resistance levels - 130.61 (cloud base), 131, 131.33 (50-DMA), 131.63 (20-DMA)
Recommendation: Watch out for break above cloud base to go long, target 131/ 131.30/ 131.60.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 89.7414 (Bullish), while Hourly JPY Spot Index was at -156.988 (Bearish) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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