Morning Report

eurjpy04_01_2012

Trading is still trapped within the potential falling wedge pattern discussed yesterday; thus, we need top witness a breakout above or below one of the edges for this pattern to clarify the next move. A break above 100.75 will make the pair visit 102.50 zones and may be 104.00 while breaching through 99.20 will send it lower causing a failure to the aforementioned pattern.

The trading range for the day is expected among the key support at 97.40 and the key resistance at 101.80.

The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.

Previous Report

Weekly Report

Support99.2098.5097.8097.4097.00
Resistance100.00100.75101.00101.80102.65
RecommendationBased on the charts and explanations above we recommend buying the pair with a breach of 100.75 targeting 102.50 and stop loss with four-hour closing below 99.88 or selling the pair with a breakout below 99.20, targeting 97.80 and 97.00, stop loss above 99.85 may be appropriate.