21.07.201406:39 Forex Analysis & Reviews: Technical analysis of EUR/JPY for July 21, 2014

Long-term review

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The pair hit the 50 WSma and closed below it. In the weekly chart, the pair broke down the symmetric triangle, with a downside target at 134 levels. In Asia's session, the pair is trading below the 50 WSma, but holding just above the previous week's low. The weekly resistance is placed at 138.05 levels. The trading pattern is framed between 136-138.05 levels. If the pair reaches the 136 levels, it can extend its fall to 134 levels, on the other side, if it breaches above 138.05, it can fly up to 138.40 and 138.80 levels.

Monthly resistance 138.05

Monthly support 136

In the daily chart, the pair closed below the 50 DSma and 200 ESma. The bulls' last hope is at 136.20 (rounded to 136) parallel support. A day close below this leads to another steep fall towards 134, another parallel support level. On the upside, the pair has immediate resistance at 137.75 (200 DEma), 138.06 and 138.65 (50 DSma) levels. But, the daily momentum oscillators are indicating oversold signs.

For an hourly trading perspective, the pair is facing resistance at 137.14 (6hr high) 137.31 (21hr Sma) and 137.62 (34hr Dema). Until the pair trades below 137.62 on an intraday basis, the pair favors to bears.

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