Morning Report


Potential bearish classical pattern accompanied by negative signs appearing on momentum and trend indicators, indicated that the EUR/JPY pair has been stopped and prevented from achieving further inclines above the key resistance levels of 125.25. Thus, the bearish harmonic formation started to affect it negatively. Additional negative actions could be seen over intraday basis, particularly if it succeeded to settle down below 123.20 zones.

The trading range for today is among key support at 120.90 and key resistance now at 126.35.

The general trend over the short term basis is to the downside, targeting 115.00 as far as areas of 132.50 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 123.20 targeting 121.30 and stop loss above 125.00 might be appropriate.