Technical outlook and chart setups:
It seems that the EUR/JPY pair has resumed its counter trend rally towards at least 140.30 levels from here on. The pair has rallied over 100 pips in today's trade and is approaching the 138.00 mark. Immediate support on the daily chart view depicted here is seen at 134.00 levels and lower while resistance is seen at 140.30 levels (Fibonacci ratio) and higher respectively. Bulls could remain in control at least untill 140.30 levels from here on. The bigger picture reveals that EUR/JPY might have begun a 3 wave corrective decline into the 115.00/116.00 levels and the current rally could be wave 2, within the 3 waves correction. Please, note that a push above 140.30 levels could extend further towards 143.50 and 144.00 levels, before reversing lower.
Trading recommendations:
Remain long for now, stop at 134.00, target at least 140.30.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
