Morning report

/

The EUR/JPY pair has declined sharply, reaching the first objective of yesterday's explained scenario at 133.60. Now, we believe that CD leg of a harmonic pattern is in progress and still have technical targets to be reached around 132.10 zones. Additionally, the Elliott sequence of the short term seeks for a completion. Coming below SMA 50-valued at 134.05- will confirm our suggested negative scenario over the intraday basis.

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.

Support134.15133.60133.00132.50132.00
Resistance134.85135.50136.00136.40137.00
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 134.50 targeting 132.70 and stop loss above 135.95 might be appropriate.