Technical outlook and chart setups:
The EUR/JPY pair reversed sharply from 125.00 levels yesterday. The pair is seen to be trading at 123.70 levels for now, looking to produce intraday rallies. Please note that those rallies should remain well capped below 124.30/50 levels. The wave structure reveals that EUR/JPY is in a countertrend rally, that could extend through 125.75 levels. It is hence recommended to remain flat for now and look to buy around 122.50/60 levels, with risk at 121.50 levels. Immediate resistance is seen at 125.00 levels, while support is at 122.50/60 levels respectively.
Trading recommendations:
Remain flat for now, look to go long at 122.50 levels.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com