Weekly Report 04 -08 / 01 / 2010
According to our suggested count- seen on the daily chart-, nothing can confirm that the EUR/JPY pair has already finished the [B] correction, sinceit istrapped within rectangle areas between 127.00 and 139.20 since March 2009. Actually, it's presently forming a bearish harmonic pattern with potential reversal zones around 136.10; therefore, we think that it will move upwards during this week before resuming the corrective structure and this temporarily positive outlook matches the allover rounding top-reversal classical pattern- as the aforesaid areas might be retested to complete this classical pattern before moving downwards.
Trading range for today is among key support at 126.80 and key resistance now at 138.25.
The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair from 132.50 targeting 136.00 and stop loss below 130.05 might be appropriate.|