Technical Analysis of EUR/JPY for May 05, 2016
Technical outlook and chart setups:
The EUR/JPY pair seems to be pushing above 123.00 levels at this moment, looking to rise through 124.50 levels at least before reversing lower. The pair is expected to remain in control of bears till the prices stay below 126.40 levels for now. At present, the pair has faced resistance at fibonacci 0.382 levels (123.35) and needs a push higher to confirm further acceleration towards 124.50 levels. Please note that the sloping line of resistance has also been tested twice at 128.25 and 126.40 levels, and it still holds well. It is hence recommended to sell on rallies through 124.50 levels going forward, with risk above 126.40 levels. Immediate resistance is seen at 124.50 levels, while support is at 121.50 levels respectively.
Trading recommendations:
Remain flat now and look to short at 124.50 levels again, stop at 126.50, target is open.
Good luck!
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