Morning Report

eurjpy05_08_2011

The pair successfully completed the suggested scenario yesterday, to achieve the awaited targets and settled near to the 76.4% as shown in image. Due to the strong resistance at 113.65 and the sharp downside reversal we expect downside bias to continue over intraday basis, next target is at 108.75. Stability below 112.00 is required for the expectation to be valid.

Trading range for the day is among the major support at 107.55 and the major resistance at 112.30.

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

Previous Report

Weekly Report

Support110.25109.55108.75108.20107.55
Resistance111.50112.00112.80113.65114.10
RecommendationBased on the charts and explanations above we recommend selling the pair with hourly closing below 110.25 targeting 107.55 and stop loss above 111.50 may be appropriate.