Morning Report

eurjpy26_07_2011

Trading is still stuck among the rising wedge formation- discussed yesterday. However, it reversed to the downside after approaching the resistance level of the formation this morning, where stochastic is still overbought , and this supports our intraday bearish expectations which requires two conditions, a clear breach of 112.25 and stability below 113.65.

Trading range for the day is among the major support at 110.70 and the major resistance at 114.80.

The short term trend is to the downside targeting 100.00, as long as 123.30 remain intact.

Previous Report

Weekly Report

Support112.25111.60110.70110.25109.55
Resistance113.00113.65114.10114.80115.10
RecommendationBased on the charts and explanations above we recommend selling the pair with hourly closing below 112.25 targeting 110.25 and stop loss above 113.00 may be appropriate.