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  • EUR/JPY is neutral mode although  stochastics lean bullish but  the price has been unable to break up through the 20 and 50-DSMAs, capped at 125.10.
  • However, on a break of the moving averages, bulls will be looking to hold above the 23.6% Fibos confluence and resistance for  a run to the trend  line resistance.
  • A break there opens prospects for  the 127 handle and  the 200-DMA (127.50).  
  • Is it probable though? At this juncture, there is a neutral bearish  bias considering the 38.2% has held on multiple occasions, although price remains below cloud support and bearish MAs.
  • On the downside,  a break of 124.80, the risk would be for a subsequent test of trend line support guarding the 38.2% Fibo.
  • Below 123.40 (Jan 7 and Jan 15 lows) opens  the 50% Fibo at 123.02.
  • A break there will likely see the price continue in its southerly trajectory, extending last September’s  bear trend.