Euro vs. Japanese Yen (2010-04-07)

The pair succeeded in reaching our first technical target of the harmonic formation already, while the secondary image shows the previous explained classical formation (inverted head and shoulders). Therefore, potential upside movements could be seen over intraday basis, supported by the positive signs that started to appear on momentum indicators. Areas of 124.15 should hold to keep our scenario valid.

The trading range for today is among key support at 123.65 and key resistance now at 128.30.

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

Weekly Report Previous Report

Support125.50125.00124.60124.15123.65Resistance126.40126.75127.00127.40127.85RecommendationBased on the charts and explanations above our opinion is, buying the pair from 125.50 targeting 128.85 and stop loss below 124.15 might be appropriate.