Weekly Report 02/08 -06/ 08 / 2010
The previous mentioned bullish harmonic pattern which appeared on Stochastic of the four-hour interval assisted the EUR/JPY pair to incline sharply approaching the key resistance levels of 113.60 as seen on the provided daily chart. Thus; the bigger harmonic AB=CD is still in favor, where it is attempting to resume the CD leg rally. In result, possible ascending actions could be witnessed during this week, supported by the stable move above SMA 50.Technicl targets of PRZ reside at 115.45, followed by 116.55.
The trading range for this week is among key support at109.45 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.
Support112.80112.10111.50110.90110.50Resistance113.60114.25114.75115.45116.60RecommendationBased 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.