Technical Analysis of EUR/JPY for May 06, 2016
Technical outlook and chart setups:
The EUR/JPY pair has dropped a bit lower from yesterday's range and is now trading at 122.20 levels. Please note that the pair remains bullish in the short term and the probability is towards 124.50 levels till prices stay above 121.50 levels respectively. No doubt that the major trend remains bearish, but the pair is expected to produce a countertrend rally towards 124.50 levels and then reverse. On the flip side, a break above 126.30/40 levels would change the medium-term outlook for the pair. It is recommended to remain long for now, with risk at 121.50 levels. Immediate support is seen at 121.50 levels, while resistance is seen through 124.50 levels respectively.
Trading recommendations:
Remain long for now, stop at 121.50, target is 124.50.
Good luck!
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