Technical outlook and chart setups:
The EUR/JPY has taken out potential support at 135.80 and tested 135.00 levels before bouncing back. As seen here, the pair is clearly in the sell zone of the resistance/downtrend line and a break of at least to 136.50/138.00 would be required for bulls to take control back. Resistance is seen at 136.50/70, followed by 138.00 and higher while support is seen at 135.00 (interim), followed by 134.00 and lower respectively. In short term, a rally towards 136.80 remains possible, but a bearish reversal there could take prices lower towards 134.00 at least. Bears shall remain in control till prices stay below 138.00 levels.
Trading recommendations:
Remain flat for now.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
