Technical outlook and chart setups:
1. The EUR/JPY pair had broken out of the sloping resistance line earlier and printed highs at 138.30 levels. The pair has fallen back at resistance turned support line and is seen to be testing around 136.00/10 levels again. A bullish reversal here could still possibly extend gains towards 139.30 and 139.90 levels, at least. It is therefore recommended to remain long and also look to initiate fresh long positions at current levels.
2. Support is seen at 136.00/135.80 (interim) and lower, while resistance is seen at 139.30, followed by 140.00 and higher respectively.
3. The structure indicates that EUR/JPY pair could still potentially reverse from the current level (136.10) towards the level of 140.00 in the coming sessions.
Trading recommendations:
Remain long, stop below, 135.80, target is 140.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
