FX.co ★ Technical analysis of EUR/JPY for April 16, 2014

Technical outlook and chart setups:

1. The EUR/JPY pair continues to probe/test trendline support of consolidation zone. At the moment it is seen trading comfortably above the 141.00 region. Resistance should be around 142.50, the trendline resistance within consolidation. Recommendations are to continue holding short positions for now, look to sell failure at 142.00/143.00 levels.

2. Support is at 140.00 (intermediary), followed by 138.50, 136.00 and lower, while resistance is at 142.20/143.00, followed by 144.00 and 145.50 respectively.

3. The structure indicates that EUR/JPY rally should stall around 143.00 levels. The pair should reverse from there and continue drifting lower. Only a break above 144.00 would bring back bulls in picture.

Trading recommendations:

Remain short, stop is at 144.00, target is open.

Good luck!