Morning report

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As the pair reached our defined technical target at 134.80 zones, the EUR/JPY pair needs some kind of correction to relieve the momentum indicators before resuming the major [A-B-C] corrective waves of our detected short term Elliott wave cycle. The daily candlestick formation -secondary image- supports the technical idea of resuming the downside rally. This mild upside correction is awaited to reach 135.50-135.80 zones.

Trading range for today is among key support at 132.50 and key resistance now at 138.20.

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

Support134.60134.15133.60133.10132.50
Resistance135.50135.80136.30137.00137.40
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 135.50 targeting 133.60 and stop loss above 137.00 might be appropriate.