Technical outlook and chart setups:
The EUR/JPY pair hit a fresh low at 129.19 level yesterday as seen here. This drop has taken out our stop at 130.00 level again. Please note that the last yesterday’s drop could be the final one before a reversal towards the level of 137.50 and higher. Enough divergence is seen on the daily chart setup, which is indicative of a potential reversal. An aggressive trade setup could initiate fresh long positions with risk at 128.00 while a more conservative strategy is likely to remain flat for now and for further evidence of a bullish signal on daily charts. Immediate support is seen at 128.00 level while major resistance is now seen at the level of 137.50 respectively.
1. Aggressive trade setup is to initiate long positions now (129.60/65), stop at 128.00 target 137.50
2. Conservative trade setup is to remain flat.
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