Technical outlook and chart setups:
The EUR/JPY pair retraced lower till sub 147.00 levels yesterday before rallying again. The pair is still holding its new channel line support well, and might be looking to push higher towards 151.00 at least. It is recommended to remain long and move risk to 147.00 levels. In the event of the 147.00 break, one can look to stop and reverse. Immediate support is at 146.50, followed by 145.50 (interim), 145.00 and lower while resistance is seen at 149.00 levels. Please note that the pair should be in control of bulls till the channel line remains intact and print higher highs. On the flip side, if channel support breaks, the pair could be in for a deeper correction lower towards 142.00 levels.
Trading recommendations:
Remain long, move stop to 147.00 from 146.50 (there is no risk now!), the target is 151.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
