Euro vs. Japanese Yen (2009-11-12)

After the sharp decline yesterday, the pair is moving sideways preparing to activate CD leg of a harmonic pattern which is in progress for the time being. This potential bearish harmonic scenario is to accelerate if the pair succeeded in breaching the up trend line which is currently under attack. Therefore, we keep our suggested negative outlook over the intraday basis. Technical targets reside at 132.10 and 129.80 zones.

The 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.

Support134.15133.60133.00132.50132.00Resistance134.85135.50136.00136.40137.00RecommendationBased on the charts and explanations above our opinion is, selling the pair from 134.60 targeting 132.50 and stop loss above 136.10 might be appropriate.