Technical outlook and chart setups:
The EUR/JPY pair rallies through 124.00 levels today as expected and discussed yesterday. The pair might have formed a meaningful bottom at 121.40 levels and is now looking to target at least 124.50 levels if not further. Please also note that 124.50 is fibonacci 0.618 resistance levels of the drop between 126.40 and 121.40 respectively. A bearish reaction there should bring bears back into control again and push the pair lower. On the flip side, a rally through 126.40 levels would confirm that a double bottom is in place at 121.40. It is recommended to remain long for now, with risk at break even levels. Immediate support is at 123.20 levels, while resistance is seen at 124.50 respectively.
Trading recommendations:
Remain long for now, move stop from 121.40 to break even levels, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com