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08.06.2012 11:32 AM
EUR/JPY Hits First Resistance at 100.30/40. A Pullback Expected

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Technical Outlook and Chart Setup:

EUR/JPY grew to hit resistance at 100.30/40 levels yesterday. A pullback is expected, towards 98.00-97.00 levels. Let us consider the wave structure here. The current rally from sub 96.00 levels could be the first leg of the 3 legs pullback rally. It is very much probable that the complete pullback rally ends between 102.00 and 103.00 levels, before the counter finally reverses to fresh lows. It is too early to go aggresively short at the moment.

Trade Recommendations:

Go short between 102.00 and 103.00 at the end of counter trend. Target 90.00 and 94.00.

 

Good Luck !

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