EUR/JPY, rejection of 130.00 builds bearish pressure

FXstreet.com (Barcelona) - After four consecutive days of gains, the EUR/JPY consolidated prices before the end of last week. Current price has opened right around same levels at 128.70/80, with the upside still well capped by 130.00.

Downside favoured short-term

In view of <a href="http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2013/06/23/">Valeria Bednarik, Chief Analyst at FXstreet.com, "The hourly chart shows a bearish potential increasing with indicators heading south, although price finds support in its 100 SMA, around 128.00. Downside is favored, with 127.00 as target for today."

Meanwhile, Chris Capre, Founder at 2ndSkies, also finds interesting the case for further bearish pressure, after the EURJPY formed a pin bar signal off the daily 20ema: "Although this is not at a stronger resistance area like 130.70, I'd still think this is a workable signal as it offers a low risk setup by taking a pullback into the pin bar" Capre said.

Capre sees downside targets at 126, 125, while a close above 131.53 would likely mean a retest of the yearly highs around 133.