FxWirePro: EUR/JPY hits fresh 12-month highs above 133 handle, outlook bullish

EUR/JPY chart - Trading View 

EUR/JPY has extended gains above 133 handle, hit fresh 12-month highs, outlook bullish.

According to Eurostat’s final reading Eurozone CPI report for April came in at 1.6% on a yearly basis, meeting estimates of 1.6%. While the core figures dropped to 07%, missing the 0.8% consensus forecasts.       

On a monthly basis, the bloc’s CPI figure for April arrived at 0.6% versus 0.6% expectations and 0.9% previous while the core CPI numbers came in at 0.5% versus 0.6% expected and 0.6% last.

Further, according to a business survey conducted by the German DIHK Chambers of Industry and Commerce, German economy is likely to see a 3% growth this year amid improved business morale over the past three months.

From a technical perspective, GMMA indicator shows major and minor trend are strongly bullish on daily and weekly charts.

Price action is above daily cloud and major moving averages. Momentum studies support upside, Stochs and RSI are strongly bullish. MACD and ADX also support gains.

Major Support and Resistance Levels:

Support - 133, 132.79 (5-DMA), 132.56 (78.6% Fib)

Resistance - 133.46 (Upper BB), 133.48 (Apr 2018 high), 134.87 (88.6% Fib)

Summary: EUR/JPY trades with a bullish bias. Breakout above 200-month MA has opened upside. Scope for test of 88.6% Fib at 134.87. Bullish invalidation only on retrace below 200-month MA.