Technical outlook and chart setups:
The EUR/JPY pair has dropped lower to the 134.00/133.70 levels today, as it was discussed yesterday. The pair is now expected to rally from the current levels, and a bullish candlestick pattern is expected here. Please also note that the pair has reached its Fibonacci 0.618 support as well, around the 134.00 levels. It is hence recommended to initiate long positions now with risk at the 132.00 levels. Immediate support is seen at the 133.00 levels followed by 132.00 and lower, while resistance is seen at the 137.00 levels followed by 139.00, 140.00 and higher, respectively.
Initiate long positions, stop is at 132.00, target is open.
The material has been provided by InstaForex Company – www.instaforex.com