FX.co ★ EUR/JPY: Technical Analysis for December 27 -- 28, 2011.

Overview:

EUR/JPY's subsequent sharp fall suggests that decline from 102.80 two week ago and had resumed to 101.15 (Strong support). It should be noted that the price has still been trapped between 102.80 -- 101.50 and the price has been set below strong resistance at the levels of 102.80. 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, 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 102.80 for that it will a good sign to sell below it with a first target of 101.88 (You should be noted that the weekly pivot point is at 101.88) and it will call for downtrend in order to continue bearish towards 101.04 (00% of Fibonacci retracement levels on H4 chart).

Furthermore, it also have to note that the price at 101.04 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 101.04 with a first target of 101.60 and continue towards 102.75.

Weekly Pivot Point : 101.88

Recommendations:

• Bearish outlook: 102.80 will be formed a strong Resistance (a good sign to sell below it).
• Bullish outlook: 101.04 will be formed a strong Support (a good sign to buy above it).