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07.06.2012 10:24 AM
EUR/JPY Intraday Technical Analysis

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The spot rate is presently testing the upper limit of its medium term bearish channel at 99.90 and is expected to decline. However, a breakdown of these levels will reveal significant potential and initiate a violent bullish trend.

Technical indicators provide sellers signals and as long as the resistance is unbroken, the assumption of a decline is relevant. Bollinger bands are much discarded due to the strong recent increase. The situation is expected to stabilize in the nearest future. 

According to previous events the market will provide a bullish opportunity as soon as the spot rate has broken through its resistance of 99.90 with 100.50 and 100.70 seen as first targets. In case te level 99.70 is passed though, the prospect scenario will be cancelled.

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