Technical Analysis of EUR/JPY for May 23, 2016
Technical outlook and chart setups:
The EUR/JPY pair continues to drift in a range between 123.00 and 124.00 levels as depicted here. The pair is now seen to be trading at 123.00 levels, looking to break below the range support. It is expected to continue dropping lower below 121.40 levels going forward. The wave structure indicates that EUR/JPY has carved out a lower low at 124.00 levels last week and has completed a flat correction. The pair looks to have resumed its downtrend towards fresh lows. It is hence recommended to remain short for now, with risk at 124.75 levels. Immediate resistance is seen at 124.60 levels, while support is seen at 122.50 levels respectively.
Remain short with stop at 124.75/85, target below 121.40.