The EURJPY cross has been trading in a narrow range recently, and it was spotted 0.2% weaker on Monday, hovering at around 130.25.
Bulls are now trying to breach the critical resistance of 130.50, where the euro has failed many times already. If that level is broken to the upside, larger stop-losses of short positions could be triggered, most likely leading to another leg higher.
The next target for bulls could be in the 132 region, where the price was in August 2018.
However, the breakout needs to come soon, or there is a risk of a double top pattern – which is a reversal formation.
The support could be located at the 21 EMA, at the moment near 129.70. Another huge level to watch is near 129.20/30, where the long-term uptrend line is located.
If the price drops below that trendline, the medium-term uptrend would most likely be over, with a possible decline toward the 126 region.