Morning Reporteurjpy06_01_2012

The pair has stabilized around 98.60 after achieving the awaited breakout below 99.05 yesterday. We believe that the pair will continue moving downwards over intraday basis within the descending channel seen on the provided daily graph while EMA 50 offers the required protection for sellers. Technical targets reside at 97.40 and 96.50 so long as 123.30 remain intact.

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.

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RecommendationBased on the charts and explanations above we recommend selling the pair around 99.05 targeting 97.40 and stop loss above 100.10 may be appropriate.