- EUR/JPY has broken stiff resistance at 21-EMA, raises scope for further upside.
- The pair has hit new 2-week highs at 130.128 before paring some gains to currently trade at 129.94.
- Euro boosted on speculation that the ECB is willing to discuss QE tapering at their next June 14th meeting.
- Technical indicators are bullish. Stochs and RSI have rolled over from oversold levels and MACD shows bullish crossover on signal line.
- On the weekly charts, the pair has bounced off 100W SMA with a hammer formation.
- The major has broken above 38.2% Fib at 129.54 and is on track to test major resistance 131.20 (converged trendline and cloud bottom).
- On the flipside, 21-EMA at 129.05 is immediate support. Close below could see some weakness.
Support levels - 129.05 (21-EMA), 128.88 (5-DMA), 128, 127.66 (23.6% Fib)
Resistance levels - 130, 131, 131.20 (converged trendline and cloud bottom), 131.35 (May 22 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-extends-gains-for-the-4th-straight-session-eyes-382-Fib-at-12954-stay-long-1347083) has hit all targets.
Recommendation: Book partial profits. Trail SL to 129.50, hold for further upside. Target 131/ 131.20
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