Technical outlook and chart setups:
The EUR/JPY pair hit fresh lows yesterday around the 126.60 level before bouncing back sharply, and is seen trading at the 127.60 level for now. Looks like a drop from the 141.00 level is complete at the 126.60 level yesterday and that the pair should be heading north from the current levels. A break above 128.50/129.00 would confirm the same and will also accelerate rally towards 133.00 and 134.50 respectively. It is hence recommended to initiate fresh long positions now, with risk at the 126.00 level. Immediate support is seen at 126.00 while resistance is seen at 128.50/129.00 respectively. Bulls should now remain poised to remain in control till prices stay above 126.00.
Trading recommendations:
Initiate long positions, stop at 126.00, target is open.
Good luck!
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