Morning Report

eurjpy27_01_2012

The pair couldn't settle above 102.00 for a long time, where it reversed again in a downside correction that touched the awaited support level we mentioned previously at 101.00. Stochastic is within oversold areas and the 50 EMA is supporting the pair from below. Accordingly, we expect an intraday bullish move today that requires two conditions, a breach above 101.60 and steady trading above 100.90 and most important above 100.25.

The trading range for the day is expected among the key support at 100.25 the key resistance at 103.50.

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

Weekly Report

Support100.90100.25100.0099.1098.50
Resistance101.60102.00102.55103.35103.80
RecommendationBased on the charts and explanations above we recommend buying the pair with hourly closing above 101.00 targeting 102.55 and 103.50, stop loss below 100.25 may be appropriate.