Morning report


The EUR/JPY pair is still trapped below 76.4% Fibonacci level-valued at 130.25- for the CD leg of our previous discussed AB=CD pattern, seen on the four-hour chart. The candlesticks formation encourages us to keep our intraday anticipation to the downside over intraday basis. AROON down-colored in red- is still moving freely above the value of 70.00 while Stochastic has overlapped negatively, adding additional confirmation to our scenario. Areas of 131.10 should hold to keep the suggested intraday direction valid.

Trading range for today is among key support at 125.60 and key resistance now at 133.60.

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 129.30 targeting 127.35 and stop loss above 131.10 might be appropriate.