Technical outlook and chart setups:
The EUR/JPY pair has hit fibonacci 0.618 resistance around the level of 141.00 as seen on the daily chart. The pair might have formed a meaningful top and looking to resume its down swing below 126.00. Also note that a potential bearish candlestick pattern (tweezer top) has been also formed, indicating a change in its direction. It is hence recommended to remain short with risk above 141.50. Immediate support is seen at the level of 139.00 (interim), followed by 138.00, 136.00, 134.00, and lower. Resistance is seen at 141.00 followed by 142.00 and higher respectively.
Trading recommendations:
Remain short for now, stop is at 141.50 a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com