Weekly Report 26/07 -30/ 07 / 2010
Once more, the EUR/JPY pair is attacking the upper line of the trading range areas that dominated the movements since the first week of May as seen on the provided daily chart. A break of 113.60 could send it upwards and will confirm the completion for the CD leg of the suggested harmonic AB=CDpattern.
1- The aforesaid breakout is needed to fix the bearish sign appearing on AROON.
2- The PRZ- potential reversal zones- of the harmonic pattern reside around 115.65 and might extend further towards 116.60 zones.
The trading range for this week is among key support at 109.45 and key resistance now at 116.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support112.80112.10111.50110.90110.50Resistance113.60114.25114.75115.65116.60RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 113.60 targeting 116.50 and stop loss below 111.50 might be appropriate.