Last week the EUR/JPY broke sharply the level of 120.50, then it closed at 122.35. This week is trading above the weekly pivot of 120.67. It is likely that for the next few days there will be a bounce at this level. It will provide an opportunity to buy the pair with objectives to first weekly resistance of 124.67. With a close below 120, the pair may continue falling until the first support of 118.68. In the medium term the euro-yen has left a GAP December 24 last year, at 111.80. All the gaps are covered, so in the medium term it should be at these levels. This pair is overbought, so you should be cautious if you are buying this pair.

120.72 and 111.67 are weekly and monthly pivot points for this week for EUR/JPY.

Signals for January 28 - February 02, 2013

Buy if it rebounds at 120.72 (W_PPV) with take profit at 124.37 (W_R1), stop loss is above 118.68.

Sell if it closes below 120.72 (W_PPV) with take profit at 118.68 and 115.03 (W_S2), stop loss is above 124.37.

____WEEKLY_____
Weekly - R3 = 130.06
Weekly - R2 = 126.41
Weekly - R1 = 124.37
Weekly Pivot = 120.72
Weekly - S1 = 118.68
Weekly - S2 = 115.03
Weekly - S3 = 112.99

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____MONTHLY____
Monthly - R3 = 126.06
Monthly - R2 = 120.38
Monthly - R1 = 117.35
Monthly Pivot = 111.67
Monthly - S1 = 108.64
Monthly - S2 = 102.96
Monthly - S3 = 99.93