Morning report


Yesterday's reportcaught aminor bearish harmonic structure, seen on the four-hour chart above,which forced the EUR/JPY pair to form a dark cloud pattern. The potential reversal zone took the pair below SMA 50. Hence, the negative bigger picture is to continue over intraday basis. Technical targets reside at 131.00 followed by 129.85.

Trading range for today is among key support at 131.00 and key resistance now at 136.40.

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 132.50 targeting 130.50 and stop loss above 134.15 might be appropriate.