Technical Analysis of EUR/JPY for May 04, 2016
Technical outlook and chart setups:
The EUR/JPY pair seems to have hit initial resistance at 123.35 levels as expected yesterday before pulling back lower. Please note that the pair has reversed from fibonacci 0.382 resistance levels and might be looking to push through the 62% retracement levels (124.50) before turning bearish again. It is hence recommended to remain flat for now and allow the prices to hit through 124.50 levels before initiating fresh short positions with risk at 126.40. The wave structure reveals that bears are expected to remain in control till the prices stay below 126.40 levels, going forward. Immediate resistance is seen at 124.50 levels, while support is at 121.50 levels respectively.
Trading recommendations:
Remain flat for now and look to go short around 124.50 levels.
Good luck!
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