Morning report

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The EUR/JPY pair declined sharply affected by the previous explained Elliott wave corrective rally as seen on our provided four-hour chart that took it towards the key support level of the short term basis around 132.50. The pair is definitely oversold so that a slight internal corrective action may occur but the secondary image proves that the negative pressure is to continue over the intraday basis under the pressure of consecutive bearish candlestick formation.

Trading range for today is among key support at 129.80 and key resistance now at 136.10.

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

Support132.50132.00131.45131.05130.50
Resistance133.60134.15134.85135.00135.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 133.60 targeting 131.80 and stop loss above 135.00 might be appropriate.