Morning report


The EUR/JPY pair has been capable of reaching the first objective of our previous explained bearish harmonic AB=CD pattern at 132.10 areas. The candlesticks formation suggests further bearishness is to be witnessed on the intraday basis and the path is clear towards the second technical target of CD leg at 130.35 zones. Carefully note that a mild correction might occur towards the pivotal resistance areas of 132.50, before resuming the proposed downside rally.

Trading range for today is among key support at 128.90 and key resistance now at 136.10.

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 130.35 and stop loss above 134.15 might be appropriate.