Morning report


The EUR/JPY pair succeeded in forming a reversal rounding bottoms pattern, seen on the four-hour chart. Currently, it is facing 38.2% Fibonacci level that might force it to re-test the broken neckline before resuming the entire corrective upside rally, targeting 132.50 zones. The mentioned neckline is valued at 130.50 areas. Momentum indicators are in a definite need for a relief; supporting the idea of retesting this neckline before achieving upside movements over intraday basis.

Trading range for today is among key support at 126.80 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, buying the pair from 130.50 targeting 132.50 and stop loss below 128.60 might be appropriate.