Technical outlook and chart setups:
The EUR/JPY pair has pushed higher beyond our projections and is seen to be trading around 118.20 levels at this moment. The pair has re-tested 118.40 levels and should be looking to drop lower from here. Please note that EUR/JPY may be carving out a flat A-B-C structure and could possibly drop lower towards 115.30 levels at least. The wave structure also reveals that the pair has unfolded into 5 waves from 109.50 levels, and it should produce a meaningful retracement lower towards 113.50 levels, if not further. It is hence recommended to remain short from here, with risk above 118.40 levels. Immediate intermediary support is seen at 115.20 levels, while resistance is at 118.40 levels respectively. Bears are expected to remain in control till prices stay below 118.40/50 levels going forward.
Trading recommendations:
Remain short now; stop at 118.40, target is 113.50.
Good luck!
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