Technical outlook and chart setups:
The EUR/JPY pair seems to have formed a meaningful bottom at 109.50 level last week and it should be looking higher from current levels (112.90). According to the larger picture as well, the pair has bounced within the confines of fibonacci 0.618 support (weekly chart) level and should be looking higher from here. The weekly wave structure also reveals that a 5-wave rally (95.00 through 149.00) was followed by a 3 wave corrective drop and hence high probability remains for a rally from here. Please note that the weekly wave structure has not been represented here, rather short them 4H view has been depicted for a closer look. It is hence recommended to remain long now, with risk below 109.00 level. Immediate support is seen at 109.50 level, while resistance is at 115.00 level respectively.
Trading recommendations:
Remain long now, stop at 109.00 levels, a target is open.
Good luck!
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