For the next week we are in favor of some more downward consolidation but for that a decisive break below 108.48/108.40 is required, as mentioned above. Such a break should bring further downward move first towards 107.50 and then possibly towards 106.50/106.65. This would represent the supports of 55-day EMA as well as the upper edge of daily Ichimoku cloud. Even if EUR/JPY breaks below this resistance zone, we would expect very strong support near 105.63 (March 7th).
Please note that we will be taking any downward moves as consolidation and not as bearish trend till any strong break below the psychological 105.00 level takes place.
On the upside a break over first the recent 111.43 and then 111.62 (end of October 2011 resistance) is required for further upward moves towards 114.20 or more.
Please note that EUR/JPY has started showing the early signs of trend reversal for upside but a better indication of the same will only come with a decisive break over 111.60 and then 112.00 and when 110.00 becomes a support level instead of resistance.
Further Readings:
1) EUR/JPY forecast for weekly overview of the currency pair.
2) Daily technical analysis of EUR/JPY.
By forexabode.com
