- EUR/JPY spikes above 132 handle as the single currency was boosted by ECB governing council board member Philip Lane's comments.
- Lane said that there is no concern about current Euro level and that the ECB must judge implications of any Euro volatility.
- EUR/JPY is trading 0.75% higher on the day, hit 3-week highs at 132.37 before paring some losses to currently trade at 132.25 levels.
- Technical studies have turned bullish. The pair has bounced off strong support at 200W SMA.
- Price action has broken above major resistance at 131.55 levels (nearly converged 20 and 200 DMA).
- We see scope for test of 61.8% Fib at 134.39. Bearish invalidation likely on retrace below 200-DMA.
Support levels - 131.56 (20-DMA), 131.52 (200-DMA), 131.46 (5-DMA)
Resistance levels - 132.46 (38.2% Fib), 133.05 (Feb 21 high), 133.42 (50% Fib), 134.39 (61.8% Fib)
Recommendation: Good to go long on dips around 132, SL: 131.50, TP: 132.45/ 133/ 133.40
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -69.6204 (Neutral), while Hourly JPY Spot Index was at -145.07 (Bearish) at 1115 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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