The pair has been consolidating for the last two months. It's stuck in a range between 143.78 and 139.88. Until the pair breaks above the 143.78 level, it favors selling on rally (weekly RSI). On the down side, if the pair breaks the previous week's low at 139.88, it will drift to 139.14 and 138.78 initially and later 136.2 and 134 levels will be on the cards. On the up side, the initial resistance exists at last week's high at 142.35 and 143.8 levels.
The pair is trying to hold the previous support at 139.88 levels. The daily momentum indicators favor to buy at cmp or even on dip at 139.75 (38.2 fib level). On the up side the pair has strong resistance at 140.91 and 140.51.
For an intraday purpose, we favor buy side supporting by hourly momentum indicators. On the up side the pair is facing resistance at 140.16 levels above this it will fly up to 140.30, 140.82, 141.11 and 141.26. Though the pair is in a pullback mode from the oversold levels, it has a rough road ahead at 140.16, 140.82 levels. The RSI is indicating a positive divergence.
Recommendations- cmp 140.04.
Safe traders, buy above 140.16 for targets at 140.30, 140.82, 141.11 and 141.26.
Risky traders, buy and hold at cmp or even deeper.
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 May 14, 2014 . Thanks for your support on Technical analysis of EUR/JPY for May 14, 2014
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