Technical Outlook:
EUR/JPY is expected to continue its rally up to 107.50. Furthermore, the bullish momentum will possibly end near 109.99 and 110.00 levels. For this week Buy-deals are still considered as relevant. The point 105.00 is considered as support level while resistance levels are seen in ponits 109.50, 110.00 and 111.00. Consider the long positions and refer to Trade Recommendations below.
Chart Setup:
We would like to remind that the recent fall from 111.00 to 105.00 levels can be used in 2 ways.
1. It could have completed the retracement of the large upswing that started from 97.00 levels up to 111.00 levels. And now it is moving towards new highs above 111.00.
2. The first downleg of retracement has been completed at 105.00 levels, the current upswing is a counter trend rally which could last up to 109.00-110.00 levels and then drop down towards 102.00 levels.
Taking into account both opportunities, Buy-deals are recommended targetting 107.50 levels up to 109.00-110.00 levels. This strategy remains relevant and the resistance area as shown in the form of an arrow, comes at 109.00 levels onwards. Bottom Line: Stay long for now.
Trade Recommendations: Issued early this week
Buy @ 105.60/80, Stop @ 105.00, Target Open. Move stop loss to break even levels today. We do not have any risk now...!
Best Regards,
