Technical outlook and chart setups:
The EUR/JPY pair is seen to be producing a Harami Candlestick pattern on the daily chart, indicating a potential pullback. Please note that the pair might have completed its first leg down from 139.00 to 132.00 with a high probability of retracement. It is hence recommended to exit all short positions and remain flat for now. Aggressive traders might initiate long positions, with risk just below the levels of 132.00. Immediate support is seen at 132.00 and lower while resistance is seen at 136.00 (interim) followed by 139.00, 140.00, and higher.
Take profits on short positions. Aggressive setup is to be long with stop below 132.00, a target is at 137.00.
The material has been provided by InstaForex Company – www.instaforex.com