Technical analysis of EUR/JPY for May 05, 2014


Technical outlook and chart setups:
1. The EUR/JPY pair is bouncing off the channel support and resistance at the moment, broadly between 141.40/50 to 142.50/60 for now. The pair is again at the support near 141.50 levels. A break here would be encouraging for bears and a subsequent break below 140.00 would confirm bearish resumption. Recommendations are to sell on the break of channel support.
2. Support is at 141.00, followed by 140.00, 138.50, 136.00 and lower while resistance is at 142.50, followed by 143.50/144.00 and 145.50 on the higher side.
3. The structure indicates that EUR/JPY bears would want to break 141.00 levels for now. On the flip side, a bullish bounce here again, would enable prices to re-test 142.50.

Trade recommendations:
Remain flat for now. Sell on a break of the channel line support.


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