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15.05.2012 10:13 AM
EUR/JPY Intraday Technical Analysis

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At the moment the spot rate is  testing the intermediate resistance of its medium term bearish channel at 103.10 and is likley to decline. However, a breakdown of these levels will reveal significant potential and enabling to reach its upper limit in 104.20.

Technical indicators do not provide clear signals but as long as the resistance unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong decline these days. The situation is epected to stabilize soon.

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 103.10 with the 1st targets seen at 103.70 and  103.90 levels. In case the level 102.90 is passed through, the proposed scenario will be cancelled.

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