EUR/JPY right on major support, remain bullish for a corrective bounce

Price has continued to drop from yesterday. We're now at the major support level of 129.55 (Fibonacci extension, horizontal swing low support, bullish price action) and we expect to see an intermediate corrective bounce above this level for the price to rise to at least 130.07 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing the strong support above 7.3% and we expect to witness a corresponding bounce above this level.

Correlation analysis: We are seeing JPY weakness across the board with bounces expected on EURJPY, AUDJPY and USDJPY

Buy above 129.55. Set stop loss at 129.34 and take profit at 130.07.


The material has been provided by InstaForex Company -