FxWirePro: EUR/JPY faces rejection at weekly 200-DMA, further upside only on break above

• EUR/JPY is trading with a neutral bias on an intraday basis.
• The pair is extending grind along 20-DMA which is strong support currently at 129.50.
• Consolidation to continue into the week ahead, with weekly 200-SMA at 130.60 offering strong resistance.
• We see further bullishness only on break above. Test of 134 levels (78.6% Fib retrace of 141.05 to 109.205 fall) then likely.
• Momentum studies are bullish on weekly charts, RSI strong around 68 and MACD supports uptrend.
• On the flipside, break below 20-DMA could see minor weakness upto 128 levels.

Support levels - 129.95 (5-DMA), 129.50 (20-DMA), 128.88 (60.8% Fib retrace of 141.05 to 109.20 fall)

Resistance levels - 130.76 (July 11 high), 131, 132 (Feb 2016 high)

Recommendation: Watch out for decisive break above weekly 200-SMA to go long. 

FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 48.4823 (Neutral), while Hourly JPY Spot Index was at 145.443 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest