Weekly Report 22-26 / 03 / 2010

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After touching the upper line of the descending channel, the EUR/JPY pair started to decline once more affected by the classical rounding top pattern and the suggested Elliott count. Coming beneath EMA 10-80-Ribbons lines- added more confirmation for the negative pressure. To recap, possible descending actions could be seen during this week while a break of 120.90 will be able to accelerate this highly anticipated bearishness.

The trading range for this week is among key support at 117.65 and key resistance now at 126.35.

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

Previous Report

Support121.50120.90120.00119.40118.65
Resistance122.80123.60124.15125.00126.35
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 122.35 targeting 118.70 and stop loss above 125.00 might be appropriate.