EUR/JPY appears to have stabilized following a recovery from its recent low of 125.000. The pair is currently trading at 127.85 and is supported by a slight increase in the demand for the Euro. The current price is also above the symmetrical triangle while the major hurdle appears to be at 128.55. The intraday support levels are at 127.66 and 127.28.
On the intraday charts, the technical indicators are showing a moderate bullish picture. The SMA-14 is showing a support area at 127.27 and the SMA-50 is indicating support at 126.57. The RSI has moved above 60 and the MACD is also above the zero line. The mid-Bollinger band is at 127.03 and the upper band resistance area is at 128.26. The price pattern on the 4-hourly chart is equally on the upside and favors buy entries. A decent intraday buying would be at or near 127.60 with a target of 50 to 60 pips and a stop-loss at 127.25.
An intraday closing above 128.000 would put the bulls in a better position to challenge the major hurdle at 128.55. On the downside, bears would need a sustained price action below 127.27 (SMA-14) to take the pair lower towards last week’s low of 126.52.
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