Euro vs. Japanese Yen (2011-02-21)

By @ibtimes on

Midday Report

The movements of the pair were very slow during the previous session and that may interpret the nature of the rising wedge pattern around its awaited top. Therefore, we still believe that the pair is on its way to achieve a downside correctional wave, supported by the negative divergence of RSI which is under formation. Note that the lower line of this wedge should be breached to confirm our outlook, while 115.40 should act as a ceiling to keep our classical scenario valid.

The trading range for today is among key support at 111.60 and key resistance now at 115.40.

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

Weekly Report

Support113.60113.15112.80112.40112.10Resistance114.00114.25114.75115.00115.40RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 113.15 targeting 110.75 and stop loss above 115.00 might be appropriate.

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