EUR/JPY has shown a strong recovery from its recent drop at 122.60 and is currently trading at 124.66. The pair is getting support from a recovery in the euro that has recovery against its major peers especially the USD. The pair’s immediate support is at 124.42 another support is at 1.2425 area. The intraday resistance is at 124.77. Other resistance areas are at 125.00 and 125.33.
The pair’s technical outlook is now bullish, the SMA-21 is indicating support at 124.05 and the SMA-50 is showing a support area at 124.81. The pair is also above the mid-Bollinger band and the MACD is favoring the bulls as well after having a bullish crossover. However, the RSI is rather flat at 53. The price pattern on the intraday scale is bullish while it continues to be bearish on a weekly scale. On the 4-hourly scale, the pair is bullish and favors buying entries. A decent buying entry level would be at 1.2440 with a small target of 50 to 60 pips. A tight stop-loss for this trade would be just below 124.10 area.
An intraday closing above 125.00 would accelerate the upward momentum. On the downside, only closing below 124.00 would be supportive of the bears.
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