Technical outlook and chart setups:
The EUR/JPY pair has dropped significantly today as yen is rallying across the crosses. The pair is trading at 123.00 levels at the moment, and is seen to be bouncing off the Fibonacci 0.786 support of the entire rally between 121.75 and 126.50 levels. Additionally, a tweezer bottom candlestick pattern is being carved out, indicating a potential reversal ahead. Looking into the wave structure, a pullback rally is expected at least towards 124.50/75 levels before reversing lower again. It is recommended to go long now, with risk around 121.50 levels. Immediate resistance is seen at 124.75 level, while support lies at 121.75 level.
Trading Recommendations:
Remain long now, stop at 121.50, target 124.50/75.
Good luck!
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