The EUR/JPY pair also created a classical continuation pattern as seen on the provided four-hour chart but it needs to re-test the support line of this range trading areas, where we believe that Stochastic can overlap positively. Hence potential ascending movements could be witnessed over intraday basis and a break of 112.40 -SMA 50- could accelerate this scenario without any need for touching the support levels of 111.60.
The trading range for today is among key support at 109.45 and key resistance now at 114.75.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support111.60111.05110.50110.00109.45Resistance112.10112.40113.15113.60114.00RecommendationBased on the charts and explanations above our opinion is, buying the pair around 111.60 targeting 113.60 and stop loss below 110.40 might be appropriate.