EUR/JPY technical analysis for June 14, 2013

Overview:  

The EUR/JPY pair suggests that a decline from 130.00 had resumed to 128.10 (126.30 is a key level, hence it is going to form a strong support). The pair has already formed a strong support at the level of 126.30 and is now approaching it in order to test it. Moreover, it should be noted that the price is still trapped between 128.25 and 127.15 and has been set below strong resistance at the level of 130.00. Therefore, the fact that the yen will move downwards is rather convincing. Additionally, the structure of the fall does not look corrective. It is likely to indicate a bearish opportunity below 130.00 (you should keep in mind that the weekly pivot point is at 127.50). It will be a good sign to sell below 130.00 with the first target at 127.00 and it will call for downtrend to continue moving towards 126.30. Furthermore, it should also be said that the price at 126.30 will probably form a double bottom and call for a strong support. Thus, it will be saturation around 126.00/126.30 to rebound the pair. The market might also be going to start showing bullish signs. In other words, it will be a good sign to buy above 126.30 until the next week with the first target of 127.50 and continue towards 128.23.