Weekly Report 20/12 -24/ 12/ 2010

Respecting our bearish classical scenario of the captured rising wedge pattern, the pair moved sharply to the downside, after retesting the previous broken uptrend line ideally. The technical target of this continuation pattern hasn't been reached yet and thus, more negative actions are to be seen during this week, supported by the obvious negative sign of Vortex index-representative of trend indicators-, where its bearish line-colored in red- has passed over its bullish line-green-. Additionally, SMA 50 is protecting the bearishness as well.For a deeper classical outlook over bigger timeframes, we recommend reviewing EURJPY Classical report.

The trading range for this week is among key support at 106.15 and key resistance now at 114.25.

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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EURJPY Classical

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 110.50 targeting 108.30 and stop loss above 112.25 might be appropriate.