13.10.201406:56 Forex Analysis & Reviews: Technical analysis of EUR/JPY for October 13, 2014

Long-term review

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After 3 days of range bound trading, the pair finally was sold off during Friday's session. The pair pushed to the bottom of the triangle in the weekly chart. The pair has support at 135.35, below this, we can expect a free fall towards the downside target at 134.50 and 134 levels. As we recommended in our earlier articles, sellers will mint the money. Now our take is start selling again only below 135.35 20Msma. For an intraday session, traders use sl 135.35 and buy a cmp 135.66 for targets at 136.00 and 136.40. On a positional basis in the near term, use every rise to sell.

Support: 135.50, 135.35, 134.50.

For an intraday view, the prices are closed far below the hourly key moving averages. The strong support zone is between 135.50, the base of the triangle, and 135.35 20Msma. We expect before further sell-off, the pair to hold these support levels and change its direction for a small pullback towards 136.45 and 137.00. Until the prices closes below 137 on h4 chart, bears will have an upper hand.

·The base of the symmetric triangle helps the pair. Breaks below 135.50-135.35 trigger panic.

·It has been trading below the short- and medium-term moving averages

·Trading in downward trend line

Trade-

Buy at cmp 135.66, sl 135.35, target is 136 and 136.40.

Sell below 135.35 with targets at 134.50 and 134.10.

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