Technical outlook and chart setups:
The EUR/JPY pair drops lower and tests 140.50 levels before pulling back sharply towards 141.50, as seen here. It is recommended to hold long positions taken earlier and also to look to add further. Risk remains around 139.50 levels for now. The pair could still drop lower and test the level of 140.00 before bouncing back and hence the risk should be below 140.00. Please also note that 140.00 is the fibonacci 0.618 support level for the rally from 134.00 levels to 149.80 respectively. Bulls are favored to come back sharply if prices reach that area. Resistance is seen at 145.00, followed by 147.00, 148.00 and higher.
Trading recommendations:
Remain long, add further positions around 140.00, stop at 139.50, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
