Technical outlook and chart setups:
The EUR/JPY pair turned lower after hitting the level of 128.75, which is the fibonacci 50% resistance of the downswing from 131.00 to 126.00 respectively. The pair is trading around the levels of 127.90/128.00 now and should continue dropping lower from here on. It is recommended to initiate short positions at the current levels with risk above 129.00. Immediate resistance is seen at 129.00 (interim) followed by 130.00/131.00, and higher, while support is seen at 127.00 followed by 126.00 and lower respectively.
Trading recommendations:
Initiate short positions stop at 129.10, a target is open.
Good luck!
