The EUR/JPY reaches the 200 week EMA

The 200 period exponential moving average usually acts as a very good support or resistance zone, especially on the higher time frames. That is why now that the EUR/JPY has reached its 200 week EMA at the 125.46 level, it is possible for that moving average to act as a resistance. The uptrend on the pair has been steady and today it accelerates even more after the economic growth data out of the Eurozone is showing that the economy is apparently out of the doldrums and heading higher. The probability that the European Central Bank will terminate its bond purchasing program is rising and that has supported the Euro versus its main counterparts. If the EUR/JPY bounces to the downside from the 200 week EMA, then the 123.00 level or the 122.00 level may act as support. Above the 200 week EMA, the next resistance level on the weekly chart is all the way at the 128.21 level.