FX.co ★ EUR/JPY middle term view and possible opportunity June 2, 2011

:: Daily ::

Early on the Daily chart , The EUR/JPY pair formed a very strong bullish hummer at the level of support 106.80 (which is a previous low) indicating further upside movement

Strong upside movement followed this signal up to 123.35 from which the price began to make lower highs and lower lows

After reaching the 61.8% Fibonatcci price has been consolidating inside a bullish channel making higher lows indicating weakness of bears at this junction of the chart

The upper limit of the current channel and 38.2% level provided temporary resistance for the price which led the pair down to 116.00 as we expected .

:: 4H ::

Failure of the price to break the upper side of the channel led the pair down to 116.00 which is a good support level on the medium term.

It's important to notice that 116.00 is also the backside of the broken downtrend .

Based on the previous analysis :

There's a long opportunity as long as the level 116.00 holds the price above

Best price to buy at is near 116.00 level with initial target at 117.60 then 118.50 .

SL for long position should be placed below 114.40 .