Weekly Report 22 -26 / 02 / 2010
The EUR/JPY has been able to form a continuation flag pattern, seen on the provided daily chart. The suggested Elliott count offers potential resumption for the descending wave during this week to complete the corrective B wave. A breakout below 124.15 will add further negative pressure on the pair, while areas of 127.30 should hold to keep this outlook valid.
Trading range for this week is among key support at 120.00 and key resistance now at 129.40.
The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.
Support124.15123.10122.70122.10121.70Resistance125.50126.10126.50127.30128.40RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 124.15 targeting 120.00 and stop loss above 127.30 might be appropriate.