Technical outlook and chart setups:
The EUR/JPY pair dropped lower and re-tested its earlier lows (attempting for a higher low) at 130.85 levels as seen here. The earlier lows at 130.10/20 levels remains intact for now. It is recommended to hold long positions taken earlier, with risk at the level of 130.00. Bulls are expected to take control back till prices remain above the level of 130.10 . Immediate support is seen at the level of 130.10, while resistance is seen at 136.00, followed by 137.50/138.00, 140.26, and higher respectively. Please note that the current drop from 136.00 to 130.85 could still be treated as wave 2 within the 3 wave corrective rally.
Trading recommendations:
Remain long for now, stop at 130.00 target 140.30 and 142.30.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
