Technical outlook and chart setups:
1. The EUR/JPY pair seems to be bouncing off right from the trend line support as seen here. Please note that this region is also the past resistance turned support area. It is recommended to book profits from short positions taken earlier. Aggressive trade setup would be to go long again, risk remains below 140.00.
2. Immediate support is at 138.50/136.50 (intermediary), followed by 134.00, 131.00 and lower, while resistance is at 144.00 (intermediary), followed by 145.50 respectively.
3. The structure reveals that a bullish bounce here, would bring back control with bulls again and prices should rally back towards fresh highs.
Trading recommendations:
Book profits on short positions. Initiate longs now (141.05), set stop below 140.00, target is open.
Good luck!
