Morning Report

eurjpy27_07_2011.gif

The pair settled within a narrow range since yesterday and still stuck within the rising wedge formation shown in image. The current negative wedge formation and negativity on stochastic push us to expect an intraday downside move for today, and this move requires a clear breach of the wedge support at 112.45 and stability below 113.65.

Trading range for the day is among the major support at 110.25 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

Support112.45112.00111.60110.70110.25
Resistance113.00113.65114.10114.80115.10
RecommendationBased on the charts and explanations above we recommend selling the pair with hourly closing below 112.45 targeting 110.25 and stop loss above 113.00 may be appropriate.