EUR/JPY Daily Analysis
EUR/JPY is trading within the narrow channel at 134.91 ahead of today’s European session. The intraday resistance levels are at 135.16 and 135.46. The near-term support areas are at 134.77 and 134.41.
On the intraday charts, a flag pattern is forming with an unclear direction at the moment. However, the pair’s outlook is still positive. The SMA-50 is indicating support at 131.05 while the SMA-14 support area is at 134.64. The RSI is above the middle zone but appears flat at the moment. The pair is also keeping above the mid-Band. Currently, the intraday price pattern favors a bullish momentum which makes the pair ideal for buying entries around 134.70. The target for this trade will be 50 to 60 pips with a stop-loss at 134.35.
An intraday closing above 135.20 will help bulls move towards testing the April high. On the downside, bears require a sustained price action below 134.10 to gain some control.