Technical outlook and chart setups:
The EUR/JPY pair is seen to be bouncing off just ahead of its major support at 134.00 levels. The pair touched lower at 134.70/80 levels last week but did not penetrate below 134.00 levels. The bigger picture depicted here is clearly indicating that a long-term support trend line has been broken. A possible test of the support turned into resistance line could be due now at least 140.00 levels and could extend up to 143.00 levels. It is recommended to remain long from last week and also add fresh longs now, risk remains below 134.00 for now. Intraday dips could be regarded as buying opportunities. Immediate support is seen at 134.00 levels while resistance is seen at 138.80 levels respectively. Bulls might be preparing for a counter trend rally for now.
Trading recommendations:
Remain long, stop below 134.00, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
