EUR/JPY Weekly Technical Report 24-28/12/2012

The pair maintains stability above the ascending channel resistance. This helps us continue expecting bearishness throughout the upcoming days. Our targets kickoff at 110.00 then extend to 107.90. Note that breaching 112.00 then 112.35 with stability above which will reduce chances for the accomplishment of the proposed bearishness.

The trading range expected for this week is between the key support at 109.50 and the key resistance 112.80.

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

Support 110.80 110.50 110.00 109.00 109.00

Resistance 111.90 112.35 112.60 113.00 113.50

Recommendation Based on the graph and explanation above, our opinion is selling the pair around 111.90, targeting 110.50, 110.00 and 109.50 and stop-loss with four-hour closing above 112.35.