Technical outlook and chart setups:
The EUR/JPY pair has dropped lower to the sub-levels of 132.00 taking stops placed at the levels of 132.50 earlier. Please note that the pair is now testing the Fibonacci 0.786 support of the rally between 130.70 and 136.70 at 132.00/10, respectively. It is still recommended to initiate long positions with risk at the levels of 130.00. Immediate support is seen at 130.75 followed by 130.00 and lower, while resistance is seen at 137.50-138.00 followed by 140.30 and higher, respectively. The upside potential still remains upwards to at least the levels of 140.00 util 130.75 remains intact.
Trading recommendations:
Initiate new long positions at 132.30/40. Stop is at 130.00, target is 140.00.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
