Euro vs. Japanese Yen (2010-07-30)

The pair is still building the potential reversal zones of the bullish harmonic pattern appeared on Stochastic over four-hour interval as seen on the secondary image. Thus; the proposed AB=CD patternof the daily basis is still in favor and we believe that the pair might continue moving upwards insidethe CD leg rally once it hits 113.60 zones. For more details, we recommend reviewing Eye on the pair.

The trading range for today is among key support at 110.50 and key resistance now at 115.45.

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

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Eye on the pair

Support112.80112.10111.50111.05110.50Resistance113.60114.00114.40114.75115.45RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 113.60 targeting 115.45 and stop loss below 111.90 might be appropriate.