FxWirePro: EUR/JPY holds gains above 55-EMA ahead of German CPI data, bias bullish

EUR/JPY chart - Trading View 

• EUR/JPY is trading 0.32% higher on the day at 126.28 at 0535 GMT.
   
• The pair has broken above 38.2% Fib and intraday bias is bullish.
   
• Markets await the German final CPI reading for February, due for release at 07:00 GMT.
   
• Any print below preliminary estimates released earlier this month, will validate ECB's recent decision to push rate hikes out to 2020, denting the single currency.
   
• That said, technical indicators support upside. Stochs and RSI are biased higher and MACD is on verge of bullish crossover on signal line.
   
• The pair bounced off with a 'Dragonfly Doji' formation on Friday's trade, and break above 55-EMA keeps scope for further upside.
   
• Scope for test of 110-EMA at 126.63. Retrace below 55-EMA will negate further upside.

Support levels - 125.80 (nearly converged 55-EMA and 20-DMA), 125.55 (5-DMA), 125

Resistance levels - 126.63 (110-EMA), 127.16 (200-W SMA), 127.50 (Mar 1 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-EUR-JPY-pauses-at-2H-200-SMA-good-to-go-long-on-break-above-1510346) has hit TP1.

Recommendation: Book partial profits at highs. Hold for further upside.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.