Technical outlook and chart setups:
The EUR/JPY pair extends rally further up towards 144.50 right now, before reversing sharply about 120 pips. As seen here, the pair takes out past resistance at 143.78 levels indicating a potential/meaningful pullback. Furthermore, 1H charts confirm engulfing bearish candlestick pattern as well. Hence it is recommended to initiate short positions now (143.27/30), risk remains above 144.50. Resistance is seen at 144.50, followed by 145.50, while supports are seen at 141.70 levels, followed by 140.50, 137.00 and lower respectively. The pair could re-trace lower at least into 140.00 levels, which is fibonacci 0.382 support.
Initiate short positions now, set stop at 144.55, target is open.
The material has been provided by InstaForex Company – www.instaforex.com