Technical outlook and chart setups:
The EUR/JPY had raised through the level of 135.50 before pulling back as discussed and expected earlier. Please note that the pair has rallied through the fibonacci 0.618 resistance levels of the entire drop from 137.00 to 133.00. The pair is expected to reverse lower from current levels towards 130.00 and subsequently to 129.00 in coming trading sessions. It is recommended to book profits in long positions and initiate 50% short positions with risk at the level of 137.00 for now. Immediate support is seen at 134.00 levels (interim), followed by 133.00, 131.50, 127.50, and lower. Resistance is seen at the level of 136.50, followed by 137.00 and higher respectively.
Book profits on long positions. Initiate 50% short positions, stop at 137.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com