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12.11.2012 12:02 PM
EUR/JPY Intraday Technical Analysis

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The spot rate is currently testing the intermediate resistance of its medium-term bearish channel at 101.30. It seems that a decline was initiated. However, a break of these levels will free a large potential and reach the upper limit of its channel at 102.10.
Technical indicators provide buy signals, and until the resistance is not broken the assumption of a decline is most likely. Bollinger bands have stabilized showing a more regular volatility.
The spot rate is currently testing the intermediate resistance of its channel, we suggest 2 scenarios. The first one is the hypothesis of a decline where we recommend a sell on the level of 101.30 with the 1st objective at 100.70 and then at 100.50. A breakthrough of 101.50 will invalidate this scenario. The second scenario is a break of its resistance where we advise a “buy stop” which means to buy the spot rate as soon as it is broken through its resistance of 101.30 with the 1st objective at 101.90 and then at 102.10. A breakthrough of 101.10 will invalidate this scenario.

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