Technical outlook and chart setups:
The EUR/JPY popped higher yet again yesterday, taking out stops around 139.00/50. Now, it is reversing by forming a bearish engulfing candlestick pattern on the H4 chart. The pair is trading around 139.50/60 again, looking to produce a meaningful retracement lower with an immediate target at 134.00. It is hence recommended to initiate short positions again with risk around 140.90. Immediate support is seen at the level of 138.00 followed by 135.00, 133.00, 131.50, and lower while resistance is seen at 140.30/50 and higher respectively.
Now, initiate short positions again, stop is at 140.90, a target is open.
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