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02.05.2012 11:50 AM
EUR/JPY Intraday Technical Analysis

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The spot rate broke the intermediate resistance of its medium term  bearish channel at 106.20  leading to an acceleration. A pull back on these levels is expected  before reaching the upper limit of its channel at 106.90.

Technical indicators provide buy-signals supporting the assumption of a bullish movement in the short term. Bollinger bands have greatly tightened in recent days showing a plunge in volatility and the imminence of a violent movement.

According to the recent events the market will provide a bullish opportunity at the level of 106.20 with the 1st objective at 106.90 and then at 107.10. A break through 106.00 will alter this scenario.

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