04-Hour Chart
(CLICK ON THE CHART TO ENLARGE IT)159.65 is a strong support that became a strong resistance, as you can see from the thich purple horizontal line on the attached 4-Hour chart. And is also very close to the following points:
* 159.46 - 62EMA on dailies in Feb 22th;
* 159.40 - 50% fibo major bearish move 166.68 to 152.11
* 159.60 - High Feb 21th;
* 159.51 - High Jan 30th.
We also have important points that worked as resistance last week, as below:
* 159.15 - 50% fibo major bearish move 168.97 - 149.22
* 159.14 - High Jan 25th
Also we have a main 190-pip Trade Range 159.60 to 157.70
It´s hard to say where the EUR/JPY is heading. One thing is for sure: the consistent break of all resistance points above might trigger a bullish move to around 162.00.
But the RSI and Stochastic on dailies favour a minor bearish move to the bullish yellow trendline numbered as ONE in the 4-hour chart, which might be around 156.70.
So a good strategy is to SELL a failure on all resistance points mentoned above, specially if they overlap with any pivot points. Any close below 158.60 is a good indicator for the bearish at least until the bottom of the Trade Range.
