Technical outlook and chart setups:
The EUR/JPY pair is seen to be trading around 132.00 levels for now after having bounced back from 131.00 levels earlier. Besides, note that 131.00 levels is also fibonacci 0.618 support, for rally between 129.50 and 134.50 levels respectively. The pair could be looking to print higher highs after 131.00 lows have formed. It is hence recommended to initiate fresh long positions now, with risk at 129.00 levels. The rally is expected to extend through 137.00 levels and higher in the coming weeks. Immediate support is seen at 131.00 levels (interim), followed by 129.50 and lower, while resistance is seen at 133.75 and higher respectively.
Trading recommendations:
Initiate long positions now, stop at 129.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com