Technical outlook and chart setups:
The EUR/JPY pair has corrected itself towards 135.60/70 levels as expected. Please note that the pair is bouncing off the back side of resistance line which would act as support. Furthermore, the fibonacci 0.382 support is also around the same region. It remains possible that the pair corrects further towards 135.20/30 levels before reversing towards forming higher highs. Recommendations are to initiate 50% long positions now and remaining at 135.20/30, with risk below 134.50. Support is seen at 135.20/30, followed by 134.20, while resistance is seen at 137.00 (interim), followed by 138.00, 139.00 and higher respectively.
Trading recommendations:
Initiate 50% long positions now and the remaining 50% at 135.20/30, stop at 134.50, the target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
