Morning report

The bullishness of the normal retracement occurred yesterday for the European currency versus Japanese yen pair has been stopped at the previous solid support turned into resistance at 132.50, where the pair started to form a bearish candlestick structure, reviving that the major downside pressure of the [C] wave for the short tem Elliott cycle is to be resumed, targeting 129.80 as seen on the above four-hour chat. Hence the intraday overview will be to the downside as far as 134.15 remains intact.

Trading range for today is among key support at 127.60 and key resistance now at 135.40.

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 132.20 targeting 130.05 and stop loss above 133.85 might be appropriate.