Euro vs. Japanese Yen (2010-02-01)

The mixture studies between Elliott count and classical overview proves that, the second corrective wave is under formation while the rounding top pattern has been confirmed via attacking its neckline. Some kind of upside correction is needed to relieve RSI 14 and to test the broken line form below before resuming the downside rally which we expect during this week.

Trading range for this week is among key support at 119.00 and key resistance now at 130.60.

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

Previous Report

Support125.00124.30123.10122.35121.50Resistance126.20127.40128.35129.00130.00RecommendationBased on the charts and explanations above our opinion is, selling the pair from 126.30 targeting 123.10 and stop loss above 128.40 might be appropriate.