Morning Report

eurjpy22_02_2012

The pair remained stable above the resistance of the ascending correctional channel to support our intraday positive expectations, while the level of 106.00 represents a strong resistance and could block the upside move temporary supported by the negativity seen on momentum indicators. A clear breach of 106.00 is required for the pair to reach areas around 108.10, while SMA 50 supports the bullish wave from below, noting that a breach of 105.55 and stability below it could delay reaching the awaited targets.

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

Support105.55105.00104.25103.25102.55
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