Technical outlook and chart setups:
The EUR/JPY pair dropped lower towards 135.00 last week, before pulling back higher towards 136.00, as seen here. The drop towards 135.00 could be seen as a retracement of the rally between 134.00 to 137.50 respectively. It is recommended to initiate long positions now, with risk at 135.00, for an upside extension towards 140.00. Immediate support is seen at the level of 134.00 followed by 133.00 and lower while resistance is seen at the levels of 137.50/138.00 followed by 139.00, 140.00, and higher respectively.
Initiate long positions for now, stop is at 135.00, a target 140.00.
The material has been provided by InstaForex Company – www.instaforex.com