FxWirePro: EUR/JPY retraces dip below 55-EMA, eyes 110-EMA at 118.38

EUR/JPY chart - Trading View 

EUR/JPY spiked higher and was trading 0.48% up on the day at 117.87 at around 06:30 GMT.

The pair has retraced dip below 55-EMA and is on track to test 110-EMA at 118.38.

Improved risk appetite weighed over the safe-haven yen, aiding upside in the pair.

Also, yen saw some weakness on BoJ Kuroda's dovish comments. Kuroda while speaking in parliament warned about downside risks to Japan's economy.

He said "Japan's economy likely to remain in a severe state, prices to remain on a weak note due to pandemic impact, falling oil costs,".

EUR/JPY has resumed upside after 2 sessions of weakness. Momentum studies are bullish and rising volatility is likely to carry the pair higher.

The pair finds stiff resistance at 110-EMA and daily cloud. Break above will propel the pair higher.

Next major resistance aligns at 200-DMA at 119.23 ahead of channel top at 119.50 and 61.8% Fib at 119.63.

On the flipside, failure to hold above 55-EMA will see resumption of weakness.