Technical outlook and chart setups:
The EUR/JPY pair is seen to be trading at 116.09 levels at this moment, after having reversed from 114.50 levels yesterday. Please note that the expanded flat structure seems to have terminated at 114.50 levels, and the pair is now expected to rally towards fresh highs above 118.50 levels going forward. The wave structure also reveals that the pair had unfolded into 5 waves from 109.50 levels (not seen here) and has now unfolded as a flat retracement towards fibonacci 0.50 levels at 114.50. It is hence recommended to turn bullish from these levels and also on dips towards 115.00 levels, with risk below 114.50. Immediate intermediary support is seen at 114.50 levels, while resistance is at 117.50 levels respectively. Bulls are expected to remain in control till prices stay above 114.50 levels.
Trading recommendations:
Go long now, stop below 114.50, target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com