Technical outlook and chart setups:
1. The EUR/JPY pair has retraced lower towards 137.00 levels as seen here. Please note that the back side of the trend line is also passing through the same region, which is now acting as support. It is recommended to initiate long positions at current levels. Risk remains below 136.00.
2. Support is seen at 136.00 followed by 134.00 and lower, while resistance is seen at 138.00 (interim), followed by 139.50 and higher respectively.
3. The structure indicates that EUR/JPY could extend its counter trend rally towards at least 139.50 levels.
Trading recommendations:
Initiate long positions now, stop at 136.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
