Morning Report

The EUR/JPY pair has inclined sharply, positively influenced by the classical inverted head and shoulders pattern, reaching the first detected technical target of 132.50-check the analysis here-. Now the broken neckline of the aforesaid pattern is to be re-tested to relief indicators before resuming the northern upside journey towards the extension targetfor the bullish harmonic pattern, which meets the technical target of the classical pattern around 134.15. Hence, our overview will be kept to the upside over the intraday basis.

The trading range for today is among key support at 128.30 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 132.30 targeting 134.15 and stop loss below 130.85 might be appropriate