Morning Report

The Japanese yen has plummeted versus Greenback yesterday assisting the pair to draw an obvious long white candlestick formation as seen on the provided daily chart. This incline has taken the pair towards 38.2% Fibonacci retracement of the entire upside move from 75.50 to 79.55 where the closing was achieved comfortably above SMA 50. We added MACD traditional indicator to our yesterday's provided graph which interpreted the strength of buying interests in addition to the positive signs appearing on Stochastic and Vortex. Anyway, the bullishness may continue over intraday basis softly targeting 78.60 and a break of which will send the pair towards the high of October, 2010 at 79.52. On the downside, areas of 76.50 will act as a protection for bulls.

The trading range for today is among key support at 76.95 and key resistance now at 79.55.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, buying the pair around 77.70 targeting 79.55 and stop loss below 76.50 might be appropriate.