EUR/JPY: Above 4H 200-MA, focus on stocks

• US stock market gains pushed the EUR/JPY cross above the 4-hour 200MA.
• Plenty Eurozone data scheduled for release, but will likely have limited impact on the Euro.

The overnight bullish reversal in the Japanese stocks and the resulting weakness in the anti-risk JPY pushed the EUR/JPY above the 4-hour 200-MA (moving average).

The Dow Jones Industrial Average recovered more than 700 points from intraday lows to finish 230 points or nearly 1 percent higher on Wednesday on speculation the US-China trade war fears have been blown out of proportions. Consequently, the Japanese Yen fell across the board.

As of writing, the cross is trading at 131.23, having clocked a session high of 131.31 a few minutes ago.

Focus on stocks

The stocks will likely remain in the driver's seat and the Eurozone data - Germany’s factory orders report, revisions to Eurozone PMIs, Eurozone producer prices, and retail sales - will likely have a limited impact on the common currency.

Currently, the S&P 500 futures are trading in a sideways manner. A negative turn could push the EUR/JPY back below the 4-hour 200-MA, now seen at 131.05. On the other hand, the risk-on rally will likely push the cross higher to 131.82 (immediate resistance as per the 4-hour chart).

EUR/JPY Technical Levels

A clear break above 131.82 would allow a stronger rally to 132.07 (200-day MA), above which major resistance is seen at 132.44 (March 13 high). On the downside, break below 131.05 (4-hour 200-MA) could yield a pullback to 130.62 (March 30 low). A violation there would expose support at 130.00 (psychological support).