EUR/JPY: Technical Analysis for December 6, 2011.


Overview:

EUR/JPY's subsequent sharp fall suggests that decline from 106.55 a week ago and had resumed to 103.00 (Strong support). It should be noted that the price has still been trapped between 105.40 -- 103.00 and the price has been set below strong resistance at the levels of 105.36. Aswell it is noting that these levels are coinciding on a strong levels for bulls on H4 chart and the pair has already formed a strong resistance at this level of 105.36 and it is now approaching from it in order to test it. Therefore Japan Yen will be a downside momentum is rather convincing and the structure of the fall looks is not corrective, in order to indicate a bearish opportunity below 105.36(You should be noted that the monthly pivot point was at 105.36) for that it will a good sign to sell below 105.36 with a first target of 103.50 and it will call for downtrend in order to continue bearish towards 102.50 (00% of Fibonacci retracement levels on H4 chart).

Furthermore, it also have to note that the price at 102.50 will be formed double bottom and it is going to call for a strong rebound. So it will be a saturation around 102.50 to rebound the pair, aswell it will probably that the market is going to start showing the signs of bullish market. In other words, it will be a good sign to buy above 102.50 / 130.00 with a first target of 104.20 and continue towards the monthly pivot point if the price breaks this level of 105.36, it will be a clear breakout.


Monthly Pivot Point : 105.36

Recommendations:

105.36 will be formed a strong Resistance (Good sign to sell below it).

103.00 will be formed a strong Support (a good sign to buy above it).

Weekly Technical Levels: