FX.co ★ Technical analysis of EUR/JPY for July 23, 2014

The pair drifted to a 5-month low, holding its nearest support at 136.20 (February 2014 low). If this week, the pair closes below 136.20, the downfall will continue to 134 and 131.20 levels. In Asia's session, the pair is trading at 136.52, a low made at 136.46 levels. On the upside, the pair has strong resistance at 137.72 (200DEma), 138 and 138.50 (50 DSma).

Until the pair trades below 137.72, the weekly trend favors the downside.

Until the pair trades below 138.50, the monthly trend favors the downside.

The weekly and monthly support level is at 136.20 (136 rounded).

On an intraday basis, the pair is trading below the hourly moving averages. The hourly RSI is indicating positive divergence.

We recommend to buy with sl 136, camp 136.54, and on the dip at 136.20 with targets 136.70, 136.80, 136.93 and 137.20 levels. The strong momentum can take place above 137.40 levels.