Morning Report

After the volatile bullish rush the dollar versus theyen witnessed yesterday; trading stabilized around the 200 MA at 90.80, due to the pressure from this indicator, as well as the clear overbought signs on momentum indicators. We still expect more bullish movement over an intraday basis that targets 92.80 – 93.30. However, the pair might attempt to retest the neckline for the bullish technical pattern shown on the image above at 90.40.The bullish direction will remain intact todayas far asthe four-hour closings remain above 90.40.

The trading range for today is among the key support at 86.75 and the key resistance at 93.30.

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60.

RecommendationBased on the charts and explanations above our opinion is buying the pair at 90.40 To target 91.60 and stop loss below 89.60, might be appropriate