Morning report


The European currency versus Japanese yen has been able to form a bearish harmonic formation on the four-hour chart, accompanied by bearish candlestick structure. Therefore we believe that, the potential downside pressure obtained from the suggested short term Elliott sequence is to continue on the intraday basis. Areas of 135.95 should hold to keep the count valid.

Trading range for today is among key support at 131.60 and key resistance now at 137.40.

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 134.30 targeting 132.50 and stop loss above 135.95 might be appropriate.