Technical outlook and chart setups:
The EUR/JPY has dropped lower towards 132.40/50 levels today. Please note that it is also around the Fibonacci 0.382 support of the entire rally between 129.00 and 134.00 respectively. It is quite possible that the pair bounces or at least produces a pullback from current levels. It is hence recommended to take profits on short positions taken earlier. Immediate support is seen at the levels of 132.40/50 (interim) followed by 131.50 and lower, while resistance is seen at 133.00 followed by 133.50, 134.50, and higher. On the flip side, a breakout below 132.40 would accelerate further downside.
Trading recommendations:
Place take profits on short positions taken earlier and remain flat.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com