Morning Report

eurjpy03_02_2012

SMA 50 formed a resistance level yesterday, which forced the pair to fluctuate heavily around the support level of the ascending correctional channel shown above. In general, consolidation within this channel and stability above the previously breached resistance level of the descending minor channel -shown above inside the main channel- are factors driving us tohold onto our expectations for an intraday upside move, which depends on a clear breach of 100.50 and consolidation above 99.55.

The trading range for today is among the major support at 99.55 and the major resistance at 102.55.

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

Previous Report

Weekly Report

Support100.0099.5599.2098.5097.80
Resistance100.50101.05101.60102.00102.55
RecommendationBased on the chart and explanations above, our opinion is buying the pair with an hourly closing above 100.50, and taking profit at 102.55 and stop loss below 99.55 might be appropriate today