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06.11.201407:15 Forex Analysis & Reviews: Technical analysis of EUR/JPY for November 06, 2014

Long-term review

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Technical outlook and chart setups:

The EUR/JPY pair extends rally further up towards 144.50 right now, before reversing sharply about 120 pips. As seen here, the pair takes out past resistance at 143.78 levels indicating a potential/meaningful pullback. Furthermore, 1H charts confirm engulfing bearish candlestick pattern as well. Hence it is recommended to initiate short positions now (143.27/30), risk remains above 144.50. Resistance is seen at 144.50, followed by 145.50, while supports are seen at 141.70 levels, followed by 140.50, 137.00 and lower respectively. The pair could re-trace lower at least into 140.00 levels, which is fibonacci 0.382 support.

Trading recommendations:

Initiate short positions now, set stop at 144.55, target is open.

Good luck!

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