Technical outlook and chart setups:
The EUR/JPY pair has rallied through 126.80/85 levels as expected and discussed last week. The pair is facing resistance at 126.85 and looking to reverse lower below 124.50 levels going forward. Please also note that bears would remain in control till prices stay below 127.30 levels. The pair is also seen stalling at the fibonacci 0.786 resistance of the drop between 127.25 through 124.50 levels respectively. It is recommended to book profits for any long positions taken earlier and look to go short with risk above 127.30 levels. Immediate resistance is seen at 127.20/30 levels for now, while support is seen at 125.70 and 124.70 levels respectively.
Trading recommendations:
Book profits on long positions taken earlier and go short now with stop at 127.30/40 and target open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com