Technical outlook and chart setups:
1. The EUR/JPY reversed from expected levels around 140.00, respecting the falling trend line resistance. The short positions initiated earlier could be held for further downside expectations. Risk remains at 142.00.
2. Immediate resistance is at 142.00, followed by 143.00 and 145.50, while supports are spread through 134.00, 131.00 and lower respectively.
3. The structure reveals that bears might want to regain control again, having formed a bearish trading signal at the resistance line and drag prices lower towards fresh lows. On the other hand, if prices reverse from around 137.50 mark, short positions should be covered.
Trading recommendations:
Remain short for now, stop is at 142.00, target is open. Cover short positions on a bullish bounce at 137.5.
Good luck!
