After opening of the Asian session, the pair EUR/JPY reached to a peak around psychological level of 120 yen to the euro. This morning during the American session it has traded at 119.43. It is expected there will be a significant correction for this pair, the opening of the session of this week left a gap in 118.97, to be covered in the next few hours. For the next few days we expect a fall as part of the correction of this pair, because it is overbought, so we can sell cautiously until pivot level. If the pair closes below this level, it may have a downward pressure to the nearest support of 115.23. Two weeks ago the euro-yen pair left a gap at 111.80, all the gaps are covered, so in the medium term it should be at these levels. Thus, we have traced the likely movements according to the table pivots.

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

Signals for January 14 - 19, 2013

Sell if pullback is at 120.02 with take profit at 117.28 and 115.23 (W_S1), stop loss is above 120.00.

Sell if it closes below 117.28 (W_PPV) with take profit at 115.23 (W_S2), stop loss is above 120.20.

____WEEKLY_____
Weekly - R3 = 126.81
Weekly - R2 = 123.07
Weekly - R1 = 121.02
Weekly Pivot = 117.28
Weekly - S1 = 115.23
Weekly - S2 = 111.49
Weekly - S3 = 109.44

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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