Technical outlook and chart setups:
The EUR/JPY pair might have completed its ongoing correction at 135.40 levels yesterday and looking now to extend rally through 138.00 and 138.75 levels respectively. Resistance is seen at 138.00, followed by 139.10/20 and higher while support is seen at 135.20 (fibonacci), followed by 134.10/20 and lower respectively. Also note that after having broken past the line of resistance earlier, the pair is testing its back side. which is support now. A reversal here looks imminent with support strong at 135.10/20 level. Recommendations are to remain long from yesterday, risk below 134.50. Bulls are expected to remain in control for a while.
Trading recommendations:
Remain long, also look to add at 135.10/20, set stop below 134.50, target is 138.70.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
