Weekly Report

eurjpy26_03_2012

The pair found strong support at the retest level mentioned in our previous report at 108.65 and then rebounded to the upside, approaching the neckline of the bullish technical pattern shown above at 109.95. Stochastic is turning positive, which encourages us to expect an upside move this week, while a clear breach of 109.95 is required to activate the positive impact of the suggested pattern.

The trading range for today is among the major support at 107.50 and the major resistance at 111.10.

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

Previous Report

Support108.95108.65107.50107.00106.05
Resistance109.95110.50111.10111.90112.65
RecommendationBased on the chart and explanations above, our opinion is buying the pair with 4-hour closing above 109.95, targeting 111.10 and 111.90 and stop loss below 108.95 might be appropriate