Morning Report

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The secondary four-hour chart shows that, the EUR/JPY is trapped within a very narrow range but succeeded to form a bearish candlestick structure. Thereby the bigger daily picture of our suggested CD leg for the AB=CD pattern might continue to the downside on the intraday basis. A break of 130.05- value of SMA 50- will be able to accelerate this highly anticipated bearishness.

Trading range for today is among key support at 127.90 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.

 
Support130.05129.40128.90128.40127.90
 
Resistance131.05131.60132.00132.50133.15
 
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 130.60 targeting 128.90 and stop loss above 131.80 might be appropriate.
 

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