Morning Report

The EUR/JPY pair is still forming a potential reversal zone for the bearish harmonic structure, which we expect will be completed around 134.00-134.15 zone. The aforesaid areas meet the Fibonacci level of 76.4% as seen on the provided four-hour chart. Bulls power is decreasing gradually while momentum indicators are moving within overbought areas, supporting the negative intraday overview.

The trading range for today is among key support at 129.80 and key resistance now at 136.50.

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, selling the pair from 134.15 targeting 132.30 and stop loss above 135.65 might be appropriate