Euro vs. Japanese Yen (2010-07-28)

The pair closed positively above the upper line of the trading range areas yesterday, claiming that the harmonic AB=CD pattern is still in progress and it is on its way to complete the CD leg. Passing over the upper line of keltner channel added further confirmation for the potential upside scenario over intraday basis. A break of 38.2% Fibonacci level at 114.40 will send the pair upwards towards 116.55-116.60 zones. AROON also is in ourside.

The trading range for today is among key support at 111.50 and key resistance now at 116.55.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

Weekly Report Previous Report

Support113.60113.15112.80112.10111.50Resistance114.40114.75115.35116.00116.55RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 114.40 targeting 116.50 and stop loss below 112.80 might be appropriate.