Technical outlook and chart setups:
The single currency pair seems to be forming base at 120.00 level. It is re-enforced by Fibonacci 0.786 retracement level as seen here. No doubt there is not enough proof at the moment to confirm a bullish reversal and it is possible that EurJpy continues sliding down below 119.00 level and further. But looking into RSI, around 30-35 and MACD providing divergence, it is quite likely that bottom is near and a bullish reversal should materialize. Intermediary support levels are 120.00, followed by 119.00/118.75, 117.00, and lower, while resistances are lined up from 124.00, followed by 126.00, 127.00, and 127.90 respectively. It is recommended that at least 30-40% capacity should be bought at the moment, leaving room for a possible higher low formation ahead of 119.00 level. Bottom line: Bullish possibility remains till above 119.00.
Trading recommendations:
1. Aggressive Approach is to buy 30-40% of capacity at current levels (121.00/10). Stop is at 118.50, and target is open.
2. Conservative approach is to wait for a break above 123.50.
Good Luck!
