Weekly Report 24/01 -28/ 01/ 2011

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The EURJPY pair started to show signs of exhaustion as seen on RSI 14 of the provided four hour graph. We are facing a probability of forming a harmonic pattern5-0 pattern, which is dominated by the above seen Fibonacci symmetry. The pattern might be completed with PRZ at 109.70.Thereby, we may witness a downside trend during this week but that will not be confirmed unless areas of 112.10 are breached. The potential resistance levels reside around 113.65-113.70.

The trading range for this week is among key support at 108.50 and key resistance now at 115.75.

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

Previous Report

Support112.10111.60111.05110.50109.45
Resistance112.80113.15113.65114.25115.25
RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 112.10 targeting 109.70 and stop loss above 113.75 might be appropriate.