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31.05.2012 02:18 PM
EUR/JPY Finds Short Term Support with 100.30/40 as Resistance

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Technical Outlook and Chart Setups:

We present the 1D and 4H  charts for defining best positions. The single currency reached another low and is jtrading at 97.00 level. Presently it looks like a bounce on the upside is possible (look into the 4H chart above). The short term resistance line converges near 99.00 levels while the longer term resistance line converges near 102.00 levels. As depicted on the Daily charts, 100.30/40 level does not provide intermediary resistance. Therefore, prices shall resume the downtrend towards 90.00 levels after a relief rally towards 99.00 levels. In case of a breakdown of 100.30, the sell entry will still be around 102.00 levels. Look to position towards the trend rather than buying the counter trend.

Trade Recommendation:

Looking to sell around 99.00 or 102.00 targetting 90.00 levels.

 

Good Luck !

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