Weekly Report (30 Jan-3 Feb)

eurjpy30_01_2012

The pair is still stable above the previously breached neckline of the bullish technical pattern, which completed with the breach of 100.25, where SMA 50 provides a good support level and supports the bullish attempts to remain highly possible. In result, we expect an upside move this week, targeting mainly 102.55 and then 103.80, but we should pay attention that a breach of 100.25 could negative the upside move and trigger a downside movement over intraday basis.

The trading range for this week is among the major support at 99.30 and the major resistance at 103.80.

The short-term trend is to the downside as far as 123.30 remains intact, targeting 94.80.

Previous Report

Support100.90100.25100.0099.1098.50
Resistance101.60102.00102.55103.35103.80
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 101.00, and taking profit in stages at (102.55 and 103.80) and stop loss with a 4-hour closing below 100.00 might be appropriate