Morning report

The EUR/JPY pair couldn't hit the Fibonacci level of 261.8% which forced the pair to form consecutive bearish candlestick patterns as seen on the above four-hour chart. A breakout below 134.70 will accelerate the intraday bearish harmonic scenario of AB=CD, targeting 133.60 and we think that it will extend further towards the key support level of 132.50. Bulls power is decreasing gradually, supporting our overview.

Trading range for today is among key support at 132.50 and key resistance now at 138.20.

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 135.40 targeting 133.25 and stop loss above 137.20 might be appropriate.