EUR/JPY gained nearly 70 pips yesterday to close higher at 129.92. The intraday support levels are at 129.71 and 129.38. The near-term resistance areas are at 130.11 and 130.41.
On the intraday charts, the price pattern remains bearish despite yesterday’s gains. The moving averages are indicating a possible bearish crossover that might help bears drag the price well below the 129.00 mark during the next week. The RSI is at 42 and the MACD is below the middle line and favors the bears. Following the intraday price pattern and a possible bearish crossover, the pair is likely to drop further which makes it ideal for selling entries around 130.00 with a target of 50 to 60 pips and a stop-loss at 130.33.
