In line with yesterday's bearish harmonic speculation, the EUR/JPY pair slipped sharply as seen on the provided daily chart. The mild bounce occurred from around 121.40 should be seen as a normal correction to relieve the momentum indicator, which was stuck with oversold signs. Now, thenegative effectfrom our captured harmonic patternmight continue over intraday basis. Note that the Stochastic is approaching overbought areas.
The trading range for today is among key support at 119.40 and key resistance now at 125.00.
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 122.55 targeting 120.95 and stop loss above 123.60 might be appropriate.|