FX.co ★ EUR/JPY Rebound for February 21, 2013 (Daily Strategy)

The EUR/JPY following its base currency, the euro, falls until 122.22 yen after being consolidated below the downtrend line for several days. At this time it shows a slight recovery and trades above the first support 122.91 weekly. If you analyze the Japanese yen also, you will notice that this pair is still overbought, therefore, the daily closing below 122.50 could open the way to the 118.80 level. We recommend you to be very careful if you are buying this pair, only operate with small lots, because this pair is very volatile. During a week it can potentially have a movement of 700 pips. If the pair manages to reach the level of 125 yen, you can sell this pair.

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