Technical outlook and chart setups:
The EUR/JPY daily chart view has been depicted here, clearly indicating that the previous rally between 126.00 and 140.00/141.00 was a counter trend. The pair got stalled at a fibonacci 0.618 resistance around 140.00/141.00 and might have already resumed its next bearish leg. It is recommended to remain short with risk at 140.00 for now and look for an opportunity to add positions around 137.00 again. Immediate support is seen at 134.50 followed by 133.00, 132.00, and lower, while resistance is seen at 139.00 (interim), followed by 140.00/141.00, and higher.
Trading recommendations:
Remain short for now with stop at 140.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com