![\"eur](\"http:\/\/www.forexabode.com\/images\/stories\/technical_analysis\/long_term\/eur_jpy.gif\" "\\"eur")
<\/p>\nEURJPY found an expected resistance just below the strong psychological level of 110.00 and went into sideways move.<\/p>\n
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We will keep a note of the following for next week’s outlook:<\/p>\n
1) 110.00 represent a strong psychological resistance.<\/p>\n
2) EURJPY was not able to break below the 5-day EMA support, continuously for 8 trading days but that support has been broken for past 4 trading days. The same point is true with the break of the support of Tenkan line of daily Ichimoku cloud.<\/p>\n
Considering the above points we would expect some more downward consolidation. On the downside, a break below 107.19 i.e. the low of Feb 27th<\/sup> should take the currency pair towards 105.85\/105.90. This zone represents the Fibonacci 38.2% retracement of the upward move during February 1st<\/sup> to 26th<\/sup>. Not only this but this is also the current support of the Kijun line of daily Ichimoku cloud and slightly below the current 22-day EMA.<\/p>\n The above mentioned correction will be considered as natural and will not be changing the focus towards downside. We would expect further upward move after some consolidation for a retest of the 110.00 psychological level, specifically 109.85. A decisive break of that should take EUR\/JPY towards 111.20 to 111.60 resistance zone (end of October 2011).<\/p>\n Further readings:<\/p>\n 1) EUR\/JPY Forecast<\/a> for details outlook considering fundamental and technical analysis<\/a>.<\/p>\n