Technical outlook and chart setups:
The EUR/JPY pair rallied past the 136.00 levels yesterday before pulling back. A push through 136.50, would indicate that the pair could rally further to challenge 137.10/20 and 138.00 levels respectively. Support is seen a 135.00, followed by 134.00 and lower while resistance is seen at 136.50, followed by 137.10/20, 138.00 and higher respectively. It is recommended to remain flat for now and allow at least 136.50/137.00 levels to be taken out by bulls. Please note that fibonacci resistance and trend line convergence is also seen at 136.80 levels and a bearish reversal still remains a possibility.
Trading recommendations:
Remain flat for now and watch for a reaction around 136.50/137.00 levels.
Good luck!
