Technical outlook and chart setups:
The EUR/JPY pair rallied through 127.20 levels today, just a while ago. The pair is trading at 127.10 levels for now, looking to resume its downtrend. On the flip side though, a break above 127.30 levels would target 128.00 levels at least. Please note that bears are expected to remain in control till prices stay below 127.30 levels going forward. It is hence recommended to hold short positions for now, with risk at 127.30 levels respectively. Immediate resistance is seen at 127.30 levels, while support is seen at 126.80 levels respectively. A drop below 126.80 and subsequently 126.50 levels would accelerate the downside.
Trading recommendations:
Remain short for now, stop at 127.40, target is open.
Good luck!
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