Technical outlook and chart setups:
The EUR/JPY pair dropped towards the trend line and bounced off the 144.80 levels yesterday. Resistance (interim) is seen at 146.50 while support is spread through 144.50 (fibonacci), followed by 143.50, 142.00 and lower respectively. The pair needs to at least break below the trend line support and subsequently 144.70/80 to confirm that a meaningful retracement/pullback is underway. An aggressive trade setup would be to initiate short positions here, risk remains above the 146.50 levels. The pair could retrace the entire rally from 134.00 to 146.00 levels and drop towards 140.00 levels (trend line support), before resuming rally.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
