FX.co ★ Technical analysis of EUR/JPY for January 09, 2014

Technical outlook and chart setups:

1. The currency pair has broken the shorter-term support trend lines as seen here in the 4H chart. A pullback is expected towards the 144.00/30 levels at least now. It is recommended to remain flat for now and prepare to sell around 144.00.30.

2. Resistance is at 145.50, while support is at 141.00, followed by 138.50, 134.00 and lower. The recent fall could well be just a retracement before further advance higher since 141.00 is still intact.

3. The structure reveals that a rally and failure at the 144.00/20 level would prove extremely bearish for EUR/JPY and indicate that a meaningful top is already in place at 145.50.

Trading recommendations:

Remain flat for now. Preparing to enter short at 144.00/20.

Good luck!