Technical outlook and chart setups:
1. The EUR/JPY pair reveres from the following convergence levels.
i. Ahead of the fibonacci 0.786 resistance at 143.80 as seen here (previous lower top)
ii. The trend line resistance offered by cone/triangle setup.
iii. Trading signal produced was an evening star according to Daily chart setup.
Keeping all the above in consideration, it is recommended to remain short, risk remains at 144.00. A break of 140.00 would prove to be further bearish.
2. Key resistance is at 144.00, followed by 145.50, while supports are at 140.00, followed by 138.50 and 136.00 for now.
3. The structure indicates that a break below the cone support line and 140.00 would instill further confidence on the developing bearish setup. Please note that intraday rallies should remain well capped below the 144.00 level if bears want to retain control.
Trading recommendations:
Remain short, set stop at 144.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of EUR/JPY for April 07, 2014 . Thanks for your support on Technical analysis of EUR/JPY for April 07, 2014
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