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18.05.2012 09:56 AM
EUR/JPY Setting Up Below 97.00 - Technical Analysis and Trading Recommendations

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Technical Outlook and Chart Setups:

We have depicted the daily wave structure above. It is quite possible that C is in place at the 111.00 level, which is the 0.618 level of A (117.00) and B (97.50) levels. The new channel resistance is holding well and prices have broken down 110.50 levels as well. The last intermediary support level comes in around the 100.15 level. A bounce from there can still change the wave structure to bullish, but a break will then target below the 97.00 level as our D extension. As of now one can still remain short for one more day, though our expected downside targets have been met, bring down the stop loss risk to 102.00 now.

Tradign Recommendations:

Sell at 104.00/104.25, stop at 105.50, targets achieved at 100.50. Still holding short positions with stop at 102.00 now.

 Good Luck!

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