Description
⋅ EUR/JPY edges higher on the day, but remains capped below strong trendline resistance at 127.25.
Breaks above will see further upside, gains till 127.78 (daily cloud base) then likely.
Techincals on daily charts support upside in the pair. However, Stochs have approached overbought territory so caution advised.
Pair finds resistances at 127.25 (trendline), 127.40 (Feb 17th highs) and then 127.78 (cloud base).
On the downside supports are aligned at 126.62 (double bottom Feb 16th & 17th), 126.42 (5-DMA) and 126.20 (10-DMA).
On the data markets await euro area's February’s M3 Money Supply and Private Loans figures.
Yellen's speech due later in the NY session will also be in focus for further cues on Fed hikes which could impact risk appetite.
Our previous call (link below has hit targets). Risk averse traders cloud book full profits and re-enter on break above 127.25.
Others can book partial profits, raise trailing stops to 126.60, target: 127.40/127.75