Morning Report

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The EUR/JPY pair is still trapped between 132.00 and the key resistance level of 132.50, but the negative crossover appearing on Stochastic assists that the bigger daily picture is still bearish as we believe that the pair is gathering the momentum it needs to move downwards, based on of our suggestedCDleg for theAB=CDpattern, which might continueto move the downside on the intraday and short term basis.

Trading range for today is among key support at 128.90 and key resistance now at 135.50.

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

Support132.00131.60131.00130.50129.40
Resistance133.15133.65134.15134.70135.00
RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 132.50 targeting 130.05 and stop loss above 133.15 might be appropriate.