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

There is a chance that an ascending  channel might be formed, however, currently we cannot confirm such expectation due to trading below Linear Regression Indicators and below Exponential Moving Average (EMA) 50 . Meanwhile, the downside move provided a breach of 0.8070 which prevents us from expecting positivity any time soon. Therefore, we prefer staying aside until an ascending channel is created or thwarted - through breaching 0.8000 or 0.8070.

The trading range expected for this week is between the key support at 0.9760 and the key resistance 0.8165.

The short-term trend is to the upside targeting 1.0370 as far as 0.7785 remains intact .

Support 0.8030 0.8010 0.8000 0.7985 0.7960

Resistance 0.8070 0.8100 0.8135 0.8165 0.8190

Recommendation Based on the chart and explanation above, our opinion is to remain neutral and await clearer signs for direction.