Weekly Report 25 -29 / 01 / 2010
The EUR/JPY is presently showing signs for a mild upside correction as Stochastic is in a definite need for relief. We expect that this correction is to be limited around 128.35 and might extend further towards 129.40. From these areas, the pair will come back to the major bearish direction towards the projected technical objective of 125.50, where the harmonicAB=CDwill be completed. AROON still shows negative signs supporting the bearish scenario.
The trading range for this week is among key support at 123.45 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.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair from 128.35 targeting 125.55 and stop loss above 130.60 might be appropriate.|