EUR/JPY Weekly Technical Report 14-18/1/2013

Sharp upside movement continued after the pair took advantage of breaking through 116.15 last week. This cleared the way for an extended uptrend, perhaps all the way to levels around at least 122.15. Stability above 116.15 maintains potential uptrend valid , however over intraday basis, we prefer stability above 118.40 to  further support such uptrend.

The trading range for this week is between the key support at 117.50 and the key resistance at 123.00.

The short-term trend is to the upside targeting 122.15 as far as 111.40 remains intact at week`s closing.

Support 119.85 119.00 118.40 118.00 117.50

Resistance 120.10 120.80 121.50 122.15 123.00

Recommendation Based on the graph and explanation above, our opinion is buying the pair above 119.85 targeting 120.80, 121.50 and 122.15 and stop-loss with four-hour closing below 118.00 for this week