Midday Report

The EUR/JPY pair is moving towards re-testing the broken resistance line of the minor declining channel which meets the value of SMA 20 at 130.70. We see that, the pair is gathering the momentum it needs to breach the 61.8%Fibonacci level which represents the neckline of the classical head and shoulders bottom pattern. A break of 131.45 will confirm the bullish harmonic pattern at the same time. For all those reasons we keep our overview to the upside for the rest of the day.

The trading range for today is among key support at 128.30 and key resistance now at 134.15.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

RecommendationOur morning expectations remain valid