The Euro (EUR) inched higher against the Japanese Yen (JPY) on Wednesday, increasing the price of EUR/JPY to more than 119.50 following some economic news release. The technical bias remains bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 119.94. An immediate hurdle can be seen around 119.70 (the 38.2% fib level + a short term horizontal resistance area) ahead of 121.33 (the high of February 10th) and then 123.02 (the trendline resistance area) as demonstrated in the given below daily chart. The technical bias shall however remain bullish as long as the 118.50 support is intact.

On the downside, a support can be noted around 118.59 (the trendline support area). A break and daily closing below the 118.50 support zone shall invalidate the yesterday’s bullish pin bar, opening door for another dip towards the 117.50 support area.

Germany’s Manufacturing Activity  

German manufacturing expanded at the strongest rate in nearly six years in February, a survey showed on Wednesday, suggesting factories will push up overall growth in Europe’s biggest economy at the start of 2017. Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, rose to 56.8 from 56.4 in January. It was the highest reading since May 2011 and above the 50 line that separates growth from contraction for the 27th

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair around current levels can be a good strategy.