As we see, the EUR/JPY pair was able to breach the short term upside trend to once again trade below the 126.66 critical level. Technical indicators are giving mixed signals on the different time frames suggesting volatility in the markets while the MACD indicator supports the downside trend on intraday charts where we expect the pair to decline slightly to 125.81 before rebounding back to the upside.
Support 125.81 125.20 124.67 124.10 123.71
Resistance 126.66 127.09 127.51 127.91 128.32
After declining to levels below the 130 mark, the pair was able to rebound vigorously to the upside from the 129.80 level as it is currently once again retesting the strong resistance at 133.70. The Stochastic indicator shows the pair being overbought, but the ADX indicator still shows the potential for further inclines. However, for a successful breach of the 133.70 level, the pair must decline first in correctional movements to 132.78 at the very least before managing to breach the level and build a solid base above it which will then open the way to 134.53 as the first upside target.
Support 133.15 132.78 132.54 132.00 131.79
Resistance 133.70 134.07 134.53 134.90 135.32
The strong selling pressure on the Euro and the upside momentum on the Sterling pound helped the pair decline to breach the key support for the medium term ascending channel to fall to levels near the 76.4% correction for the ascending wave that started on 1-12-2008 and ended on 30-12-2008 at 0.9431. Although the pair seems to be oversold on the four hour charts on the Stochastic indicator, directions indicators are still supporting the downside movement which could extend the pair's losses but no farther than the 0.9395 level before correcting back to the upside.
Support 0.9431 0.9410 0.9395 0.9382 0.9365
Resistance 0.9462 0.9480 0.9492 0.9519 0.9549