Morning report


From Friday's recorded low around 126.85, the EUR/JPY pair succeeded to form an hourly bearish harmonic AB=CD pattern, seen our provided chart. The potential reversal zones of the aforesaid pattern reside between 131.35 and 131.90 zones. The overbought signs that are appearing on momentum indicators support the bearish formation. So that, we believe that the intraday outlook is bearish, targeting 128.90. Note that areas of 132.50 should hold to protect our anticipation.

Trading range for today is among key support at 126.50 and key resistance now at 134.15.

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 131.00 targeting 129.00 and stop loss above 132.50 might be appropriate.