Morning Report

eurjpy17_02_2012

The pair was able to reach the suggested targets yesterday at 103.80; however, the bullishness stopped there, where momentum indicators are negative over 4-hour basis, but SMA 50 supports the pair from below, which drives us to expect the intraday upside move to continue today towards the second target at 104.25 and then reaching areas around 105.00 and then 106.00, noting that a breach of 103.20 weakens the upside move.

The trading range for today is among the major support at 102.70 and the major resistance at 106.00.

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

Previous Report

Support103.50103.20102.70101.90101.35
Resistance104.25105.00106.00106.70107.30
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 103.50, and taking profit at 105.00 and then at 106.00 and stop loss below 103.20 might be appropriate