FX.co ★ Technical analysis of EUR/JPY for November 07, 2014

Technical outlook and chart setups:

The EUR/JPY has formed an indecision candle (shooting star type) pattern on the daily chart yesterday after reversing from 144.20 levels. Probability remains high from this point, for the bulls to take a pause and retrace towards at least 139.00/140.00 levels before rallying further up. Resistance is seen at 145.50 while support is spread across 140.00, followed by 138.00, 135.20 and lower respectively. It is recommended to remain short from what was discussed yesterday, with risk above 144.50/60 levels. More conservative trading approach would be to enter buying at lower levels. Bears could take control for a while, towards 140.00 levels at least.

Trading recommendations:

Remain short, stop at 144.50, target 139.00/140.00

Good luck!