Weekly Report 08-12 / 03 / 2010

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The EUR/JPY bounced strongly on past Friday, suggesting that the neckline of the previous discussed reversal classical pattern could be re-tested before resuming the downside rally inside the recently established descending channel. Thus, potential upside bullish movements towards the neckline areas-seen on our provided chart- could be seen during this week. Note that theRSI 14 supports this temporary bullishness.

The trading range for this week is among key support at 119.40 and key resistance now at 127.30.

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

Support123.15122.10121.70120.90120.00
Resistance123.65124.15125.00125.50126.35
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 123.15 targeting 126.35 and stop loss below 120.90 might be appropriate.