Technical outlook and chart setups:
The EUR/JPY had dropped to fresh lows at 112.50/60 levels today during early hours of trade, before pulling back higher again. The pair is seen to be trading close to 113.00 levels at this moment, looking to rally and target first resistance at 114.70/80 levels as discussed yesterday. Please note that the pair is still within the range of fibonacci 0.618/0.786 support of the entire rally between 110.80/90 through 118.40/50 levels as depicted here. Furthermore the pair seems to have completed the drop from 118.40/50 levels in 3 waves, which is corrective till now. It is hence recommended to remain long now, with risk below 112.00 levels. Immediate support is seen at 112.00 levels, while resistance is seen through 114.75 levels respectively. Bulls should remain in control till prices stay above 112.00 levels going forward.
Trading recommendations:
Initiate fresh long now, stop below 112.40, a target is open.
Good luck!
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