Morning Report

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The EUR/JPY pair is trapped within a narrow range of trading. Hence, we believe that a price explosion is under preparation for the time being. These expected movements are awaited to be to the downside over intraday basis, resuming the construction of theCDleg for the [AB=CD] pattern. Only a break of 131.60 areas can make us reconsider this overview, while a breakout below 128.90 is anticipated to accelerate our harmonic scenario.

Trading range for today is among key support at 126.80 and key resistance now at 132.50.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

Support129.40128.90128.45127.80127.30
Resistance129.85130.50131.05131.60132.00
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 129.85 targeting 127.80 and stop loss above 131.60 might be appropriate.