Technical outlook and chart setups:
The EUR/JPY pair has pulled back from the 141.20/30 levels and is trading around 140.00 at the moment. The entire structure indicates that EUR/JPY might have formed a major low at 135.80 levels and it could be towards printing a fresh high above 145.00 in medium term. A pullback into the 138.20/139.00 levels should be considered as opportunity to initiate long positions again. Immediate upside potential remains at 142.30/50 levels. Also please note that the pair has broken resistance line of its counter trend from 145.00 to 135.80 and hence buying on dips should remain a preferable trading strategy for now.
Trading recommendations:
Remain flat for now. Look to enter long between 138.20 and 139.00 again.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
