Morning Report

eurjpy23

The pair declined to reach levels near the 50% retracement again around 114.90, the harmonic pattern is still valid, which is a Bat pattern , the CD leg of this pattern may take the shape of an AB=CD formation. The ADX is signaling the upside movement weakened dramatically. Stochastic is near overbought area, accordingly, we hold onto our negative expectations for the pair, mentioning that stability below the 50% retracement may confirm the downside move.

Trading range for the day is among the major support at 111.60 and the major resistance at 116.90.

The short term trend is to the downside as long as 132.50 holds, targeting 97.90.

Previous Report

Weekly Report

Support114.90114.25113.60112.80112.10
Resistance115.25115.75115.90116.30116.90
RecommendationBased on the charts and explanations above our opinion is selling the pair around115.25 targeting 112.10 and stop loss above 116.30 may be appropriate for today.