Technical outlook and chart setups:
The EUR/JPY pair reversed from fibonacci resistance around the levels of 136.50. The pair is seen to be trading at 135.90 at the moment and is expected to continue drifting lower. Also note that the pair is testing its 50 day moving average resistance line on the daily chart. It is hence recommended to remain short and also look for an opportunity to add positions now, with risk at 139.00 levels. Immediate support is seen at 132.00 levels (interim), followed by 130.00 and lower, while resistance is seen at 136.50 (interim) followed by 139.00, 140.00/141.00, and higher.
Trading recommendations:
Remain short for now with stop at 139.00, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com