EUR/JPY Weekly Technical Report 31/12/2012 – 4/1/2013

Following this week`s kickstart gain, the pair rose trading in sensitive levels resembling 224% (on the graph) at 110.90. This level is a key interval to the success or failure of the proposed harmonic pattern. Stochastic projects overbought signals encouraging us to suggest a downside move , especially as risk/reward ratio is convenient in these areas.

The trading range expected for this week is between the key support at 109.70 and the key resistance 118.00.

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

Support 113.20 113.00 112.50 112.00 111.70

Resistance 113.80 114.00 114.25 115.00 115.50

Recommendation Based on graph and explanation above, our opinion is buying the pair above 113.00 targeting 114.00, 115.00 and 116.20 and stop-loss with four-hour closing below 111.70 for this week