Morning Report

eurjpy14_02_2012

The pair declined sharply reaching the strong support provided by the SMA 50 at 101.80, where we notice that the pair rebounded to the upside significantly supported by the positivity seen on Stochastic. In general, we suggest an intraday upside move inside the ascending correctional channel shown above, noting that a breach of 101.80 could weaken our suggested scenario, which targets 103.80 and then 104.80.

The trading range for today is among the major support at 101.00 and the major resistance at 104.80.

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

Previous Report

Support102.00101.40100.80100.1599.25
Resistance103.35103.80104.25104.75105.15
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 102.00, and taking profit at 103.80 and 104.80 and stop loss below 101.40 might be appropriate