FxWirePro: EUR/JPY consolidates above 21-EMA, eyes 50-DMA at 128.90, stay long

Refer EUR/JPY chart on Trading View

• EUR/JPY edges higher from session lows at 127.91, bias higher.
   
• Price action has broken above 21-EMA at 127.90 and is extending gains above 128 handle.
   
• Technical indicators are turning bullish. Stochs have rolled over from oversold levels and RSI is biased higher.
   
• Cloud is offering stiff resistance at 128.30, break above will see resumption of upside.
   
• We see scope for test of 50-DMA at 128.90 ahead of 38.2% Fib at 129.54. Weakness only on close below 5-DMA.
   
• Focus now on the August flash PMIs in the EZ with German manufacturing PMIs taking up strong attention.

Support levels - 127.93 (21-EMA), 127.66 (23..6% Fib), 127.35 (5-DMA)

Resistance levels - 128.30 (cloud base), 128.90 (50-DMA), 129.54 (38.2% Fib)

Recommendation: Stay long on break above daily cloud, target 128.90/ 129.55

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 97.5895 (Bullish), while Hourly JPY Spot Index was at -118.805 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.