Weekly Report

/eurjpy27_02_2012

The pair breached the resistance of the descending main channel shown above and provided daily and weekly closing above it, which suggests that the bullishness could extend this week, yet some fluctuations are possible due to the negativity seen on momentum indicators. The level of 110.75 represents a critical barrier facing the upside move, where a breach of this level is necessary to confirm the continuity of the upside move and reaching the targets at 111.90 and 113.40.

The trading range for this week is among the major support at 107.55 and the major resistance at 111.90.

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

Previous Report

Support108.80108.00106.95106.00105.80
Resistance109.75110.00110.75111.90113.40
RecommendationBased on the chart and explanations above, our opinion is buying the pair around 108.00, and taking profit at 109.70 and stop loss below 106.95 might be appropriate