FxWirePro: EUR/JPY capped at cloud top, break above required for further gains

Chart – Courtesy Trading View 

Spot Analysis:

EUR/JPY was trading 0.15% lower on the day at 144.84 at around 12:40 GMT.

Previous Week’s High/ Low: 144.58/ 141.49

Previous Session’s High/ Low: 145.10/ 143.66

Fundamental Overview:

The German ZEW Economic Sentiment Index improved sharply to -23.3 in December from -36.7 in November, beating market expectation of -26.4. 

The Current Situation Index rose to -61.4 from -64.5 but missed market expectation of -57. 

Further, the Eurozone ZEW Economic Sentiment Index rose to -23.6 from -38.7. 

Technical Analysis:

– EUR/JPY pivotal at daily cloud top

– Volatility is high, momentum is bullish

– MACD confirms bullish crossover on signal line

– GMMA indicator shows major trend is neutral, while minor trend is bullish

Major Support and Resistance Levels:

Support – 144.31 (5-DMA), Resistance – 145.27 (Cloud top)

Summary: EUR/JPY on verge of cloud breakout. Failure at cloud top will see some weakness in the pair. Bullish invalidation below daily cloud.