Morning report

The European currency vs. Japanese yen also has found a solid support around 129.00 levels that assisted the pair to form a secondary bullish harmonic pattern inside the bigger bearish wave as seen on our provided four-hour chart. Now, the strength of 61.8% Fibonacci level and the overbought signs appearing on the indicators may cause a slight correction before resuming the intraday bullish action, targeting 132.50 zones and may extend further towards the key resistance level of 134.15 as an extended target of the bullish structure.

Trading range for today is among key support at 127.60 and key resistance now at 135.50.

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, buying the pair from 131.00 targeting 132.80 and stop loss below 129.60 might be appropriate.