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10.01.2013 10:31 AM
EurJpy On The Verge Of A Bullish Breakout. Above 115.20/30 Will Confirm

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Technical Outlook and Chart Setups:

A 4H view has been presented here to have a closer look at the pennant structure which has been formed since several trading sessions and a possible breakout. As depicted here, one can clearly observe a decreasing resistance (116.00... 115.50...) and constant support (113.50/60) type pennant/sideways movement development. The prices are currently testing the upper boundary of the structure at the moment near 114.90/115.00 levels. A break higher would certainly push the prices to the next resistance level at 118.00; while a bearish formation would again bring it down to 113.50/60 levels. It is recommended to buy fresh on a break higher, and sell on a test and reversal.

Trading Recommendations:

Hold on to long positions taken earlier, stop is at 113.00, and target is at 117.90/118.00.

Good Luck!

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