Today's Support and Resistance Levels:
Support Resistance
S1: 94.77 R1: 95.01
S2: 94.37 R2: 95.22
S3: 94.14 R3: 95.64
Technical Overview:
After the test of 94.22 yesterday we have seen a minor rally to 95.22 which we consider to be corrective by its nature, therefore, we are looking for one last decline to just below the 94.22 to end the entire decline since the 111.43 high in March 2012. Once the low is in place, we should expect a powerful move towards the upside, taking out resistance at 95.64 for a continuation higher towards important resistance at 97.27.
The short term risk is a direct break above resistance at 95.22, which will indicate that we saw an important low at 94.22 yesterday and would call for a direct continuation towards resistance at 95.64.
Trading Recommendation:
Buy EUR against JPY at 94.20 with a 93.50 stop. For now consider taking profit at 97.00.