FX.co ★ EUR/JPY Corrective Movement, Janaury 26, 2011 (Weekly Strategy)

EUR/JPY

The strong resistance level at 113.00 forms the last line of defense that the pair may yet reach in a light momentum movement. Only a breach of the 113.00 resistance level will cancel the bearish prediction on the pair.

That said, a basis for a sell position depends a breach of the two central price levels – 112.00 and 111.80. The first, 112.00 support level, represents the pattern's trend line and will form a sell trigger if it is breached downwards. The downwards movement is expected to carry the pair down to the lower support level of 109.40.