Technical Analysis of EUR/JPY for April 18, 2016
Technical outlook and chart setups:
The EUR/JPY drops lower and prints 121.70 levels today as expected earlier. The pair is seen to be trading at 121.92 levels, and should be looking to rally in a countertrend (3 waves) from here. The pair should be looking to break above its resistance trend line, and produce a meaningful retracement higher. Structurally also, the drop from 128.20 levels looks to be an impulse (5 waves) and hence a corrective rally is expected. It is hence recommended to exit short positions taken earlier and look to go long from here. Immediate resistance is seen at 124.00/25 levels, while support is at 121.70 levels respectively.
Please book profits on short positions taken earlier. Look to go long now, after a bullish signal confirmation.
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