Technical Analysis of EUR/JPY for May 16, 2016
Technical outlook and chart setups:
The EUR/JPY pair is seen to be trading lower at 122.95 levels at this moment and should be looking to continue drifting lower below 121.40/50 levels going forward. Please note that the pair had reversed from fibonacci 0.618 resistance levels at 121.50/55 earlier (as shown here) and should continue its downtrend. Intraday pullback rallies are possible, but they should remain well capped below 124.50 levels from here on. It is hence recommended to remain short and look to add further on intraday rallies carving out lower tops ahead of 124.50 levels. Immediate resistance is seen at 124.50 levels (interim), while support is at 124.40 levels respectively.
Trading recommendations:
Remain short for now, stop at 124.60, target is open.
Good luck!
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