Technical outlook and chart setups:
The EUR/JPY pair has moved up to 135.20 after failing to the level of 139.00 last week. The pair might be looking for an opportunity to form its next larger bearish leg after pulling back towards 137.00/50. It is recommended to hold short positions now and to initiate fresh positions around 137.50, with risk at the zone around 139.00 now. Immediate support is seen at 135.00, followed by 134.00, 133.00, and lower, while resistance is seen at 136.50/60, followed by 138.50, 139.00, and higher respectively.
Trading recommendations:
Remain short and initiate fresh short positions into 137.50, stop at 139.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com