FxWirePro: EUR/JPY breaks above 110-EMA, risk reset amid positive vaccine news supports gains
EUR/JPY chart - Trading View
EUR/JPY erases losses and spikes higher to break above 110-EMA resistance at 118.39.
The pair hit session highs at 118.66 as risk appetite increases amid positive vaccine news.
Novavax (NVAX) announced that they have started human trials and expect initial results in July.
Technical indicators are bullishly aligned. Scope for test of 200-DMA at 119.24.
US-China tussle surrounding the Hong Kong bill wil be closely watched for further impetus.
Break above daily cloud and 200-DMA will propel the pair higher. Next bull target lies at 76.4% Fib at 120.87.
On the flipside, failure to hold above 110-EMA will see weakness. Retrace below 55-EMA negates near term bullish bias.
Support levels - 118.39 (110-EMA), 117.82 (5-DMA), 117.51 (55-EMA)
Resistance levels - 118.89 (Upper BB), 119.24 (200-DMA), 119.63 (61.8% Fib)