Technical outlook and chart setups:
A weekly chart view of EUR/JPY has been depicted here to keep in mind the larger picture. The EUR/JPY might have completed the large upswing (5 waves) from 94.00 levels to 149.00 levels that began in the mid 2012. The pair might have a 3 wave correction which can go deep into 115.00 levels as depicted here. The current drop from 149.80 levels might end near 134.00 levels, which could be the first leg of correction. It is recommended to remain flat for now and look for entering long to capture wave 2 which could potentially rally back towards 142.00/143.00 levels. Immediate support is seen at 134.13 followed by 127.00 and lower while resistance is seen at 142.00/143.00 followed by 145.00, 149.80 levels respectively.
Trading recommendations:
Remain flat for now, look for buy slight lower.
Good luck!
