Technical outlook and chart setups:
1. The EUR/JPY pair seems to be drifting lower towards 138.00 levels for now. Please note that an intermediary line of support is passing through at the moment and a bullish bounce could be possible ahead of 138.00/137.80 levels. Recommendations are to still remain long with risk just below 138.00. A break below would confirm that the pair is heading to fresh lows.
2. Support is seen at 138.00 (fibonacci), followed by 136.00, 134.00 and lower while resistance is at 141.00, followed by 142.50, 143.50/144.00 and 145.50 respectively.
3. The structure indicates that EUR/JPY would accelerate downside below 138.00 levels. A bullish reversal at the moment would be required to instill further confidence in the bullish setup.
Trade recommendations:
Remain long with stop at 138.00 OR Remain flat.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
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