Morning Report

eurjpy05_01_2012

The pair continued moving bearishly yesterday hovering around the support line of the previous detected falling wedge pattern at 99.05. Momentum indicators continued giving off positive signs on four-hour time scale and that may push the pair upwards to complete the pattern. We are still in need for a clear breakout above 100.45 or below 99.05 to confirm the next direction. The potential targets were discussed in details in our yesterday's reports.

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

Support99.0598.5097.8097.4097.00
Resistance100.00100.45101.00101.80102.65
RecommendationBased on the charts and explanations above we recommend buying the pair with a breakout above 100.45 targeting 102.50,stop loss with four-hour closing below 99.85 or selling the pair with a breakout below 99.05 targeting 97.80 and 97.00, stop loss above 99.85 may be appropriate.