Weekly Report 16/08 -20/ 08 / 2010
The previous explained bullish duplicated harmonic structure is still building its base as we see on the four-hour chart. The EUR/JPY pair has found a solid support around 109.25 zones and in the interim, Stochastic indicator shows a positive sign; thereby, potential upside movements could be witnessed during this week. A break of the recently established resistance zones around 110.80 will ease the path for additional inclines, mainly targeting 112.10.
The trading range for this week is among key support at 106.50 and key resistance now at 113.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 109.75 targeting 112.10 and stop loss below 108.00 might be appropriate.|