Morning report


The European currency versus Japanese yen has reached the first technical target of the previous explained bearish scenario of the suggested Elliott count around 131.50 zones. Now, it's preparing to resume the downside rally of [C] wave, supported by the Stochastic bearish harmonic structure which is under construction for the time being. The anticipated negative crossover is to be seen if the pair reached 133.50 zones. Hence wethink that, possible downside actions are to be witnessed on the intraday basis.

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 133.50 targeting 131.70 and stop loss above 134.90 might be appropriate.