Technical outlook and chart setup:
The EUR/JPY pair raised through the levels of 136.00 today, as expected and discussed yesterday. Note that the pair has bounced off the Fibonacci 0.618 support of the rally between the levels of 132.50 and 136.50. The pair should be poised to rally through the levels of 137.50 and 138.00, respectively, before a corrective decline occurs. It is hence recommended to remain long with risk around the levels of 133.00/50. Immediate support is seen at 133.50 followed by 132.50, 130.00 and lower, while resistance is seen at 137.50 followed by 138.00, 142.50 and higher, respectively.
Trading recommendations:
Remain long for now. Stop is at 132.50, target 137.50/138.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
