Rally Exposes Key Short-Term Resistance

• RES 4: 143.16 61.8% retracement of the Dec 15 - Jan 3 bear leg
• RES 3: 142.86/94 High Jan 11 / High Dec 28 and key resistance
• RES 2: 142.04 50-day EMA
• RES 1: 141.69 Intraday high
• PRICE: 141.25 @ 05:38 GMT Jan 18
• SUP 1: 139.62/138.01 High Jan 17 / Low Jan 13
• SUP 2: 137.39 Low Jan 3 and the bear trigger
• SUP 3: 137.03 Low Aug 29
• SUP 4: 136.02 Low Aug 25

A strong rally in EURJPY has resulted in a retracement of the recent Jan 11 -13 bear leg. The cross has traded above the 20-day EMA and attention turns to the 50-day EMA, at 142.04. A clear break of this average is required to strengthen a bullish condition and this would highlight a potential reversal. Clearance of resistance at 142.86, the Jan 11 high, would also represent a positive development. The key support and bear trigger is 137.39, Jan 3 low.