Technical analysis of EUR/JPY for January 22, 2016. Market Analysis Review

Technical outlook and chart setups:

The EUR/JPY pair moved lower from days' high of 128.40. The pair is trading around the level of 127.80 now, looking for an opportunity to retrace further before gaining momentum towards fresh highs. The pair could still break above the level of 128.70 before producing meaningful retracement. A breakout above major immediate resistance at 128.70 would confirm that bulls are back and could extend a rally further. It would be a safe strategy to buy on dips there after. Hence it is recommended to take profits off the long positions initiated earlier and remain flat for now. Immediate support is seen at the level of 126.00, while resistance is seen at 128.70.

Trading recommendations:

Take profits off the long positions taken earlier and remain flat.

Good luck!

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