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

Technical outlook and chart setups:

1. The EUR/JPY pair has rallied and remains just shy of 143.00 levels. Please note that 143.00 is also the 0.618 fibonacci retracement level of the recent down swing from 145.50 to 136.00. It is recommended to remain short, risk remains at 143.00/50.

2. Immediate resistance is the 143.00/50 region, followed by 145.50, while supports are now spread through 136.00/139.00 (intermediary), followed by 134.00, 131.00 and lower respectively.

3. The structure reveals that a bearish signal confirmation at current level would bring back bears in control. Prices should be dragged down towards 132.00 and 130.00. On the other hand, a push through 143.50 should test 145.50 again.

Trading recommendations:

Remain short for now, set stop at 143.50, target is at 132.00 and 130.00.

Good luck!