Technical analysis of EUR/JPY for January 04, 2016 Market Analysis Review

Technical outlook and chart setups:

The EUR/JPY pair is seen to be trading around the 129.75/80 levels for now and it might be looking to test December lows around 129.50 before deciding on a next big move. But indicators are pointing to a potential bottom formation and probability remains high for a rally from here. It is hence recommended to initiate 50% long positions for now with risk at the 129.50 levels. Immediate support is seen at the 127.50 levels, followed by 126.10 and lower while resistance is seen at the 132.50 levels, followed by 133.70 and higher. A break above the 132.50 levels would confirm that a meaningful low is in place.

Trading recommendations:

Initiate 50% longs now, stop is at 128.50, target is open.

Good luck!

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