Technical outlook and chart setups:
The EUR/JPY pair remains poised to rally towards 138.00 levels at least and subsequently to 142.30/40 levels. As discussed earlier, the pair has taken out initial resistance at 133.00 levels and rallied up to 134.20 levels yesterday before pulling back lower. It is recommended to buy on dips from here on, risk remains 130.00 and upside potential remains 138.00 at least. Immediate support is seen at 132.50/133.00 levels and lower while resistance is seen at 134.20 (interim), followed by 135.00, 137.50/138.00 and higher respectively. Bulls should remain in control until prices remain above 130.00 for now.
Trading recommendations:
Buy on dips from here, stop 130.00, the targets are at 138.00 and 142.00.
Good luck!
