Morning report

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The clear bullish candlestick, seen on the four-hour chart alongside the positive crossover, appearing on Stochastic argues us to say that the EUR/JPY pair is on its way to form a potential CD leg for a harmonic AB=CD pattern. Note that the first objective resides around 132.25 zones. Therefore we believe that, the intraday outlook is to the upside without neglecting that the short term trend is bearish. We will explain this short term outlook deeply later.

Trading range for today is among key support at 126.80 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.

Support129.40128.90128.45127.85127.35
Resistance130.50131.05131.60132.00132.50
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 129.80 targeting 131.60 and stop loss below 128.30 might be appropriate.