Morning report


The secondary image shows how the EUR/JPY pair is currently forming a bearish candlestick formation that may assist it to activate the fifth wave of the Elliott sequence. Therefore we keep our overview to the downside on the intraday basis. The technical target of our proposed [A] wave is currently located at 134.85 zones. Indicators support the scenario.

Trading range for today is among key support at 134.15 and key resistance now at 140.50.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 138.20 targeting 136.10 and stop loss above 140.00 might be appropriate.