Morning report


Finally, the EUR/JPY pair has activated the reversal areas of our previous discussed Elliott sequence which was confirmed by the bearish harmonic butterfly pattern as seen on our provide four-hour chart. Now, we still see that it's forming the [A] wave of the cycle. Hence we keep our overview to the downside, targeting 134.85 zones.

Trading range for today is among key support at 134.15 and key resistance now at 140.00.

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 137.30 targeting 135.40 and stop loss above 139.00 might be appropriate.