Morning report

The technical target of the internal second wave of the European currency versus Japanese yen has been activated around 135.30 as we discussed before, where the negative pressure started to push the pair to the downside, 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. The secondary four-hour image shows the negative structure of the candlesticks, supporting our overview.

Trading range for today is among key support at 131.00 and key resistance now at 137.40.

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 134.50 targeting 132.50 and stop loss above 136.20 might be appropriate.