Morning report


The EUR/JPY pair moved downwards, forming bearish candlestick formation. Therefore, we keep our outlookfor a potential downside action which is under waybased on the suggested Elliott overshort term basis toform wave[C]. Form a harmonic point of view we believe that CD leg of a harmonic pattern is in progress. Stochastic supports our scenario.

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 134.60 targeting 132.70 and stop loss above 135.95 might be appropriate.