Resuming the classical analysis series for the EUR/JPY, we see how the technical target of yesterday's reports was reached easily after breaching the neckline of the head and shoulders pattern. Now and classically too, the pair succeeded to bounce sharply, where it succeeded in hitting the upper line of the bearish channel, reviving that the upside recovery could continue over intraday basis. Stochastic still has upside targets to be reached to resumes its harmonic AB=CD pattern, supporting our positive overview.
The trading range for today is among key support at 110.40 and key resistance now at 117.30.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support113.60112.90112.40111.90111.05Resistance114.25115.00115.75116.20116.80RecommendationBased on the charts and explanations above our opinion is, buying the pair with the breakout above 114.25 targeting 116.80 and stop loss below 112.35 might be appropriate.