Technical Outlook:
On Friday the EUR/JPY has broken through 108.00 levels before reversing. A pullback is expected towards 105.90-106.00 levels. 104.50 is considered as an appropriate support level, while 108.0 will provide intermediary resistance. The structure remains constructive for bulls, and they are likely to resume movement after the corrective decline. Please refer to chart below:
Chart Setup:
As shown above, prices are now expected to fall towards the Fibonacci retracement levels of 106.00-105.90 (0.618 retracement). The primary upswing boundary is 104.50 to 108.00. Traders should focus around 106.00 levels to open Buy-deals.
Trade Recommendations:
1. On Friday Stop out on short positions at 107.50 is recommended.
2. Enter buying around 106.00 levels, stop at 104.00 with Target Open for now.
Best Regards
