Technical outlook and chart setups:
The EUR/JPY pair has dropped lower today as expected. Now it is trading around the level of 133.19. Please note that the pair is still reacting/testing its line of resistance, and there is a possibility that it will move lower until the level of 134.50 holds. It is hence recommended to remain short with risk around $134.80. A push above 134.50 could prove the above count to be invalid. Even a 62% retracement of the rally between 129.00 and 134.50 could see EUR/JPY dropping to 131.00. Immediate resistance is seen at 134.50, while support is seen at 131.00.
Trading recommendations:
Remain long with stop at 134.80, a target is at 131.00.
Good luck!
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