Weekly Report 31/05 -04/ 06 / 2010
The duplicated harmonic structure, which we explained in details in our previous report took the EUR/JPY pair towards its first technical objective. Now, SMA 50 and Stochastic forced it to correct mildly but AROON shows how the bearish trend is strong enough to send the pair downwards once more as the negative effect of the pattern is still in favor. Thus; possible bearish movements could be witnessed during this week as far as 114.40 remains intact.
The trading range for this week is among key support at 108.50 and key resistance now at 116.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support111.90111.05110.50109.45108.50Resistance113.15113.65114.35115.75116.80RecommendationBased on the charts and explanations above our opinion is, selling the pair from 112.85 targeting 110.00 and stop loss above 114.75 might be appropriate.