Euro vs. Japanese Yen (2010-01-06)

At 161.8% Fibonacci level for the XA leg of the bullish harmonic structure, the EUR/JPY pair has found a very solid support that pushed him aggressively upwards. We believe that, the positive technical effect of this pattern is to continue over the intraday basis. A breakout above the pivotal resistance areas of 132.50 will accelerate this bullish scenario.

Trading range for today is among key support at 129.80 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.

Weekly Report

Support
131.60
131.05
130.60
130.00
129.40

Resistance
132.50
133.15
133.65
134.15
134.80

Recommendation
Based on the charts and explanations above our opinion is, buying the pair from 132.00 targeting 133.60 and stop loss below 130.80 might be appropriate.

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