Technical outlook and chart setups:
The EUR/JPY pair touched lows at 135.79 levels yesterday before pulling back. The pair has bounced off the Fibonacci 0.618 support of the rally from 134.80 to 137.60 levels, and is expected to continue pushing higher towards 139.50 at least. The pair is seen to be trading at 136.75/80 levels at the moment and it is still recommended to remain long for now, risk is below 134.00. Immediate support is seen at 134.00/20 while resistance is seen at 138.50 and 140.30 respectively. Bulls are expected to remain in control until the prices remain above 134.80. Please, note that this is just a counter trend rally which could fade around 140.30 or 143.00 levels.
Trading recommendations:
Remain long for now, stop at 134.00, target is 140.30.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
