EUR/JPY Weekly Technical Report 1-5/10/2012

The downside move seen was limited yet still remains stable below the psychological areas of 100.00 and also reached the main ascending support. The Linear Regression Indicators are negative and RSI is trading below 50 to the downside. We cannot confirm the negativity as Stochastic is trading in oversold areas and also the breach was provided through a bearish opening gap which might be a false breakout. Therefore, we prefer to stay neutral for now over weekly basis to see if the pair will confirm the stability below 100.00 or will return higher again.

The trading range for this week is among key support at 98.00 and key resistance now at 103.00.

The general trend over short term basis is to the upside targeting 109.15 as far as areas of 98.75 remain intact with weekly closing.

Support    99.85    99.50    99.00    98.60    98.00
Resistance    100.00    100.30    100.95    101.65    102.10
Recommendation    Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move