Technical outlook and chart setups:
The EUR/JPY pair is trading around 139.05 at the moment after pulling back sharply from the level of 140.00 yesterday. Please note that the pair has bounced off the fibonacci 0.382 support levels of a rally between 133.00 and 141.00 respectively. A break below 138.00 could bring it lower towards 137.00 and to the trendline support as seen here. On the other hand, bulls would try to remain in control until prices stay above 138.00 keeping the trend intact. It is therefore recommended to initiate 50% long positions now with risk below 138.00. Immediate support is seen at 138.00 followed by 135.00, 133.00, and lower. Resistance is seen at 141.00 and higher respectively.
Trading recommendations:
Initiate 50% long positions, stop is at 137.50, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com