EUR/JPY bulls have stalled around the 130.00 mark with yesterday’s candle forming a bearish engulfing pattern at the peak. The intraday support levels are at 129.55 and 129.28. The near-term resistance areas are at 130.18 and 130.48.
Yesterday’s drop is largely attributed to sell-offs in Euro. However, the pair has significant support areas nearby. The SMA-14 is indicating support at 129.27 and the SMA-50 support line is at 129.49. The pair is also keeping above the mid-Bollinger band while the RSI is at 53 and appears flat. Currently, the intraday price pattern is still bullish and a lower move can well be taken for a well-placed buy entry near 129.70 with a target of 50 to 60 pips and a stop-loss at 129.38.
