Morning report

The technical target of the internal second wave of the European currency versus Japanese yen is approaching around 135.30, where we think that the pair is to move downwards, activating the internal third wave as we see on the provided daily chart, as the daily sequence of Elliott offers a potential impulsive downside wave and the current upside move is to be treated as a correction for the bearish action from 138.70 to the areas of 131.05.

Trading range for today is among key support at 131.60 and key resistance now at 138.25

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair from 135.20 targeting 133.00 and stop loss above 136.90 might be appropriate.