EUR/JPY Weekly Technical Report 10-14/11/2012

The pair touches levels near 1 06.25; this level our decisive mark toward confirming continued negativity . Stochastic entered overbsold areas, yet the general setup shows possibility of entering a downside correction is very likely. Nonetheless, for such expectation to be confirmed, stability below 106.25 is vital, and when confirmed, the proposed harmonic pattern will become more credible.  

The trading range expected this week is between the key support at 104.15 and the key resistance 109.15.

The short-term trend is to the upside targeting 109.15 as far as 98.75 remains intact at week`s closing.

Support 106.25 105.80 105.10 104.60 104.15

Resistance 106.50 107.10 107.25 108.00 108.20

Recommendation Based on the chart and explanation above, our opinion is selling the pair with four-hour closing below 106.25 targeting 105.05, 104.60 and 104.15 and stop-loss with four-hour closing above 107.10 for this week.