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Technical analysis of EUR/JPY for May 20, 2016

Technical outlook and chart setups:

The EUR/JPY pair is seen to be drifting sideways between 122.50 and 124.00 levels respectively. The pair needs to break out of the cone structure depicted here and subsequently the immediate support or resistance levels to determine its next big move. Immediate resistance is seen at 124.50 levels, while support is at 122.50 levels respectively. Please note that a higher probability is seen for a break lower towards the major trend but a trading decision should be taken on further evidence only. It is hence recommended to remain flat for now and wait for a clear breakout on either side. Please note that a break above 124.75 levels would be extremely encouraging to bulls.

Trading recommendations:

Remain flat for now.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com