Morning report


The EUR/JPY pair has limited yesterday's expected correction below 76.4% Fibonacci level at 134.80 zones, where it declined sharply forming consecutive negative closings below 61.8% Fibonacci level as seen on the provided four-hour chart, signaling that the negative pressure of the [C] wave is to continue. Hence we keep our intraday overview to the downside, retargeting the areas between 131.50 and 131.00. A break of 132.80 will assist the pair to drop easily.

Trading range for today is among key support at 130.50 and key resistance now at 137.00.

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 133.60 targeting 131.50 and stop loss above 134.90 might be appropriate.