Morning Report

eurjpy03_08_2011

The pair maintains stability below the 76.4% Fibonacci retracement with another daily closing, and this is another confirmation that the downside movement is in favor during the upcoming period. Next target resides at 106.20, the previous trough. And the minor descending channel support the downside move. Stability below 110.25 is required for our expectations to remain possible.

Trading range for the day is among the major support at 106.20 and the major resistance at 111.60.

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

Previous Report

Weekly Report

Support109.55108.75108.20107.55107.10
Resistance110.25110.50111.10111.60112.00
RecommendationBased on the charts and explanations above we recommend selling the pair around 110.25 targeting 108.20 and stop loss above 111.10 may be appropriate.