Morning Report

eurjpy21_02_2012

The pair closed the session yesterday above the resistance of the ascending correctional channel, which controlled the pair's movement from 97.00, indicating that the current rebound is strong, while the correctional upside move is expected to extend today despite the negativity seen on momentum indicators. Two conditions are required to reach the targets around 108.10; the first one a clear breach of 106.00, while the second is consolidation above 105.40.

The trading range for today is among the major support at 104.25 and the major resistance at 108.10.

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

Previous Report

Weekly Report

Support105.40105.00104.25103.25102.55
Resistance106.00106.70107.30108.10108.80
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 106.00, and taking profit at 107.20 and then 108.10 and stop loss with 4-hour closing below 105.40 might be appropriate