Technical outlook and chart setups:
The EUR/JPY pair is trading around 135.25 after hitting 135.80/90 yesterday. The pair remains vulnerable for further drop into the levels of 134.00/50, before turning bullish again. Please note that its 50-day moving average is also passing through 135.00. It is hence recommended to remain flat and wait to initiate short positions between 134.00 and 134.50. Immediate support is seen at the levels of 134.00/50 (fibonacci 0.618) followed by 132.00 and lower, while resistance is seen at 137.00 (interim) followed by 139.00, 140.00/141.00, and higher.
Trading recommendations:
Remain flat now and look for an opportunity to go long around 134.00/50.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com